The U.S. Federal Reserve is expected to maintain its benchmark interest rate when its policy meeting concludes on October 28. Financial markets are pricing in a 93 per cent probability that the federal funds rate will remain within its current target range of 3.75 to 4 per cent.
The decision follows a 0.25-percentage-point increase in September. Fed Chair Kevin Warsh has said the central bank remains focused on bringing inflation back to its 2 per cent target.
The meeting takes place less than a week before the U.S. congressional midterm elections, with inflation and living costs among the campaign issues.
Markets are also anticipating a possible increase at the Fed’s final meeting of the year on December 9. Futures traders are pricing in an 87 per cent probability of a further 0.25-percentage-point hike at that meeting.
