Fed expected to pause rate hikes ahead of US midterms
The US Federal Reserve's upcoming meeting is expected to result in steady interest rates. High inflation continues to challenge economic policies, with rates anticipated to rise later this year. The Federal Open Market Committee will analyze data amidst political considerations ahead of the midterm elections. Analysts believe that while inflation remains a concern, a cautious approach will likely be taken.
The US Federal Reserve appears set to hold interest rates steady at its meeting next week, analysts say, despite stubbornly high inflation, with markets pricing in at least one rate hike before year-end.The central bank's Federal Open Market Committee (FOMC) will meet over two days and announce its decision at 2:00 pm local time (18:00 GMT) on Wednesday.US MarketsPowered ByAs on 24 Oct 2026, 01:30 AM ISTS&P 500 Top GainersCrown Castle85.97(9.06%)CrowdStrike Holdings257.57(8.25%)Palo Alto Networks380.55(7.22%)SLB53.06(7.08%)Gainers»S&P 500 Top LosersLKQ17.42(-22.47%)Coterra Energy32.56(-8.62%)Globe Life154.79(-8.09%)AT&T20.93(-7.96%)Losers»The Fed has missed its long-term 2% inflation target for more than five years, and at its last meeting in September, the FOMC voted to raise the key federal funds rate for the first time in three years, lifting the target range to 3.75% to 4%.The Fed's meeting comes days ahead of the key US midterm elections on November 3, with Democratic Party seeking to wrest control of both houses of Congress from US President Donald Trump's Republicans.Read more: Sinking profits turn China’s $3.5 trillion rout into trapLive EventsTrump frequently berated and criticised Fed Chair Kevin Warsh's predecessor, Jerome Powell, over interest rates - which he deems to be too high - but has so far refrained from targeting the man he appointed to replace him on the issue.The Fed's preferred gauge for inflation, the Personal Consumption Expenditures (PCE) price index, hit a pandemic-era peak of 7.2% in 2022, before a series of interest-rate hikes tamed it to around 2.2% by late 2024.Trump's economic policies - including his upending of the global trade order using tariffs and his war on Iran - fuelled it once more, and it hit a three-year high of 3.9 % in May.Read more: Global Market Today: Asian shares slip as AI jitters deepen ahead of big tech earningsSince the United States and Israel attacked Iran in late February, global energy prices have skyrocketed, with Tehran's retaliatory actions sharply curtailing oil and gas supplies through the Gulf.Higher energy prices have begun to cascade into other goods and services, fuelling inflation in the United States, with prices a key issue for voters as they head to the polls.'Based on the economics'Loretta Mester, former regional head of the Cleveland Fed, told AFP that the meeting's timing, just days ahead of election, would not be a factor for policymakers."The Fed doesn't take into account any kind of political issues in that FOMC room," she said.
