Federal Reserve Kicks Off Policy Meeting, Expected to Hold Rates Steady Amid Inflationary Pressures from Iran War and AI Bottlenecks
The U.S. Federal Reserve began its two-day policy meeting on Tuesday, with an interest rate decision expected on Wednesday. Markets widely anticipate the central bank will keep interest rates unchanged. However, inflationary pressures stemming from the war in Iran and AI supply chain bottlenecks could prompt officials to consider a surprise hike. According to CME Group's FedWatch, bond traders assign a 68.5% probability to rates holding steady and a 31.5% chance of a hike. New Fed Chairman Kevin Warsh aims to reduce communication with markets, and officials remain divided on whether to raise rates this year.
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