Federal Reserve set to issue interest rate decision as midterm elections loom
Summary
The Federal Reserve is expected to keep its benchmark interest rate unchanged on Wednesday, though markets anticipate a possible increase in December. The Fed is weighing rising inflation against signs of a slowing labor market, with its decision coming shortly before the midterm elections.Key Facts
- The Fed raised its benchmark rate by a quarter percentage point last month, its first increase in three years.
- The benchmark rate currently stands between 3.75% and 4%.
- Markets put the chance of no rate change on Wednesday at about 90%, according to CME Group’s FedWatch Tool.
- Markets put the chance of a quarter-point increase at the Fed’s December meeting at 75%.
- U.S. inflation reached 3.7% in September compared with a year earlier, above the Fed’s 2% target.
- Fuel prices rose amid unrest in the Middle East, contributing to higher inflation in September, according to the article.
- Employers added 29,000 jobs in September, down from 162,000 in August and below economists’ expectations.
- President Donald Trump criticized the Fed after last month’s rate increase and called for lower interest rates.
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