Fed Expected to Hold Interest Rates Steady as Inflation Accelerates
The central bank is widely expected to keep rates unchanged on Wednesday, days before the midterm elections, as inflation has picked up over the past couple of months.
The Federal Reserve is widely expected to hold interest rates steady on Wednesday, just days before the midterm elections, according to a New York Times preview written by Colby Smith. The Times said the central bank would release its decision on Wednesday and described a hold as the widely expected outcome.
PBS NewsHour, citing Associated Press reporting by Christopher Rugaber, said in a broadcast listing that the Federal Reserve is expected to "stand pat" on interest rates Wednesday. The listing said this expectation holds even though inflation has accelerated in the past couple of months.
PBS NewsHour attributed the rise in inflation to the Iran war, which it said has caused spikes in oil and gas prices. Neither the Times preview nor the PBS listing gave figures for the size of those price increases or for the current inflation rate.
The PBS listing's headline identified Fed chair Warsh as holding a briefing after the latest interest rate decision. The Times preview is titled as a guide to what to watch when the central bank releases its decision, and it was published on the day of the announcement.
The two reports agree on the expected outcome but do not describe a decision that has already been made. Both use the language of expectation rather than announcement, so the actual result of the Fed's rate decision is not described in either source.
Taken together, the reports point to the same expectation that rates will hold steady, with the Times placing the decision days before the midterm elections and PBS linking the inflation trend to higher oil and gas prices tied to the Iran war. Neither report says how the central bank will explain its decision or whether it will change its outlook.
Sources: The New York Times: The Federal Reserve Will Release Its Interest Rate Decision Today. Here’s What to Watch.; PBS NewsHour: WATCH LIVE: Fed chair Warsh holds briefing after latest interest rate decision.