Fed decision: What to expect from October rate-setting meeting
The Federal Reserve is expected to leave interest rates unchanged at its upcoming October meeting — even as higher energy costs complicate the inflation outlook and put additional pressure on household budgets.
The consumer price index, a broad measure of inflation, rose again in September, bringing the annual inflation rate up to 3.7%. Surging oil prices stemming from the U.S. war with Iran also helped drive September’s producer price index higher. On Friday, Brent crude oil was trading at a five-month high before falling slightly.
The Fed raised rates by 25 basis points to a range of 3.75% to 4% last month, its first hike since 2023. But fed funds futures last priced in less than a 10% chance the central bank will raise rates by another quarter point at its meeting this week, according to the CME Group’s FedWatch tool. Nearly 75% expect at least one hike by year-end.
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