The Federal Reserve is expected to keep interest rates unchanged at this week's meeting
The Federal Reserve is expected to keep interest rates unchanged at this week's meeting, but some analysts warn that inaction could raise questions about its inflation-fighting credibility. Despite inflation rising to 3.7% in September and surging oil prices complicating the inflation outlook, the CME FedWatch Tool shows that the federal funds futures market assigns less than a 10% probability to a 25-basis-point rate hike this week. Bank of America economist Aditya Bhave noted that if the Federal Reserve maintains current interest rates at this meeting, the market might question its credibility in combating inflation. Federal Reserve Chairman Warsh has previously pledged to bring inflation down to the 2% target.
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Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
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