Key facts
- Federal Reserve could leave interest rates unchanged while warning that additional tightening remains possible.
- Markets expect policymakers to maintain the benchmark rate between 3.75% and 4%.
- Traders see approximately a 90% probability of no change this month.
The Federal Reserve began its two-day policy meeting on October 27, with investors anticipating its next interest rate decision amid persistent inflation. Markets expect policymakers to maintain the benchmark rate between 3.75% and 4% following September’s 25-basis-point increase. Traders see approximately a 90% probability of no change this month. Former Fed Vice Chair Alan Blinder expects a hawkish pause, arguing that policymakers should communicate their readiness to raise borrowing costs again if inflation persists. He believes officials should signal that another increase remains an option for the next meeting. Investors will watch Wednesday’s announcement for clues about whether the Fed intends to maintain pressure on inflation.