Federal Reserve likely to skip rate hike despite elevated inflation
WASHINGTON (AP) — The Federal Reserve is expected to stand pat on interest rates Wednesday even though inflation has accelerated in the past couple of months as the Iran war has caused spikes in oil a The Federal Reserve is expected to maintain its current policy at the current level of interest rates despite rising inflation due to the Iran war and rising oil and gas prices. The Fed, led by Chairman Kevin Warsh, aims to return inflation to its 2% target and has raised its key rate last month from about 3.6% to 3.9%. However, Warsh faces challenges in achieving this goal, including challenges from President Donald Trump and the Fed's rate-setting committee. The average 30-year mortgage rate reached a three-year high of 7.4% earlier this month, making buying a home unaffordable for 5 million more Americans since the start of the year. The consumer price index, the most closely-followed inflation gauge, rose 0.3% in both August and September, indicating inflation would rise more quickly than the Fed’s 2% goal over a full year.
Published : 5 hours ago by jlaur in Finance
WASHINGTON (AP) — The Federal Reserve is expected to stand pat on interest rates Wednesday even though inflation has accelerated in the past couple of months as the Iran war has caused spikes in oil a... [4981 symbols]
Topics: Markets, Inflation, Federal Reserve
