The Federal Reserve meets next week. Could it raise interest rates?
Summary
The Federal Reserve is likely to keep interest rates the same at its July meeting, but rising oil prices have increased chances of a rate hike later this year. Inflation concerns remain because of higher energy costs, and experts are watching for signs of future rate changes.Key Facts
- The Fed is expected to keep interest rates at 3.5% to 3.75% in the July meeting.
- Oil prices recently went above $100 a barrel, raising inflation worries.
- Nearly half of Fed policymakers support a rate hike later this year.
- The Fed meeting is scheduled for July 29 at 2 p.m. ET, followed by a press conference.
- The Fed Chair, Kevin Warsh, plans to give less guidance about future economic outlooks.
- The chance of a rate hike next week rose from 12% to 38% recently, according to market predictions.
- Experts believe the Fed will likely keep rates steady but see September as a key test for inflation trends.
- Rising tensions in the U.S.-Iran conflict could impact inflation and rate decisions.
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