The Fed to hold interest rates steady this week

The Federal Reserve is likely to keep its benchmark interest rate at 3.75%-4% this week, after raising it in September for the first time since 2023. September consumer inflation rose 3.7% from a year earlier, above the Fed’s 2% target and economists’ 3.6% expectation, with energy costs cited as a pressure. Investors using CME Group’s FedWatch tool see less than a 10% probability of another quarter-point increase in October, though nearly 75% expect another hike before 2026. The decision comes shortly before US midterm elections, and credit-card rates are tied to the Fed’s key rate while mortgages depend mostly on Treasury bond yields.