Explainer
Why is the Fed holding rates while inflation keeps climbing?
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The Fed is widely expected to hold this week, while inflation climbs to 3.7% in September, far above target.
3.7%
Economist Nicholas Economides expects no radical moves before the vote. Even if the Fed were to do something radically different, the economy would not have time to adjust before the elections.
“Even if the Fed were to do something radically different, the economy would not have time to adjust before the elections.”
Most officials projected another hike this year, and markets now expect a December move. Christopher Waller said: The hikes do not need to come at consecutive meetings, but they should be in place in an acceptable period of time.
“The hikes do not need to come at consecutive meetings, but they should be in place in an acceptable period of time.”
Rates rose in September, the first increase in years. The next deciding point is December, where markets expect another hike.
- September 2026Rate increase, first in years
- December 2026Coming upExpected next decision
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The story
Fed expected to hold rates on 28 October as inflation climbs before midtermsRead the article
Based on reports by
- The New York TimesTrump's Revived Push to Fire a Fed Governor Looms Over Warsh.
- The New York TimesHow the Fed's Decisions Affect Your Wallet
- The New York TimesHere's the latest.
- Wirtschafts WocheFed interest rate decision: Why the US central bank is facing a rate pause
- Bloomberg BusinessFed Watchers Prep for Next Step in the Kevin Warsh 'Discovery Process'
- The GuardianFed set to hold interest rates steady in last decision before midterms