Fed expected to hold interest rates today
The Federal Reserve is widely expected to keep its key rate at 3.75% to 4% when it announces its decision at 11 a.m. PT, with inflation still running well above target.
Developing story. Details may change as more information is confirmed.
The US Federal Reserve wraps up a two-day policy meeting on Wednesday, and investors widely expect it to leave interest rates where they are. The decision is due at 2 p.m. Eastern (11 a.m. Pacific), followed by a news conference with Chair Kevin Warsh.
The Fed raised its benchmark rate by a quarter point in September, its first increase in three years, bringing the target range to 3.75% to 4%. Futures markets put the chance of another move this week at roughly one in ten, but they are largely pricing in a further hike at the December meeting.
The reason is inflation. Oil and gasoline prices have climbed during the Iran war, and higher costs for groceries and other everyday goods have soured many Americans on the economy. Holding steady now would give officials more time to see how September's hike is working.
The timing is politically sensitive: the decision comes less than a week before the November 3 midterm elections, in which the cost of living is a central issue. Some regional Fed presidents have pushed for tighter policy before, so economists will watch for dissents and for any hints from Warsh about the path ahead.
This story is developing; we will update it once the decision is announced.
This summary is original reporting by tehworldnews, written after checking the facts against several major international news outlets and official statements.