Here's everything to expect when the Fed issues its latest interest rate decision Wednesday
The Federal Reserve is expected to maintain interest rates during its upcoming meeting, with inflation remaining above target and the labor market showing resilience. Jerome Powell may be leading his final meeting as chair, with his successor, Kevin Warsh, poised to take over. Analysts predict a consensus to keep rates unchanged, with attention shifting to Powell's comments following the decision.
- ▪Jerome Powell is expected to lead the Fed in a cautious pause on interest rates.
- ▪Inflation has remained above the 2% target for five years, while the labor market is stable.
- ▪Goldman Sachs anticipates a strong consensus to keep policy guidance unchanged after the meeting.
Opening excerpt (first ~120 words) tap to expand
In what could be Jerome Powell's final meeting as Federal Reserve chair, he is expected to lead his fellow policymakers toward another cautious pause, with stubborn inflation and a resilient labor market leaving little room yet for interest rate cuts.Fed meeting live updates: Potential drama ahead if Powell hints he will hang aroundThe decision Wednesday will come against a backdrop of elevated energy prices and a central bank that has been above its 2% inflation target for five years at the same time that the labor market has been weak but not in distress. That's not a recipe for easing, at least not yet."On the dual mandate, they'd say we're roughly at a stable labor market," Roger Ferguson, an economist and former vice chair at the Fed, told CNBC.
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