Fed may hold rates steady

Business Recorder reported that the US Federal Reserve is widely expected to leave interest rates unchanged at its meeting next week, even as inflation remains above its target. The Federal Open Market Committee will meet for two days and announce its decision on Wednesday at 2:00 pm local time, or 18:00 GMT. At its September meeting, the committee raised its benchmark rate for the first time in three years, setting the target range at 3.75 percent to 4.0 percent.

Some analysts cited in the report say policymakers could wait until December before raising rates again, partly to avoid becoming entangled in political debate ahead of the November 3 US midterm elections. Others argue that persistent inflation and a stable labour market support further increases. Rising energy costs following the conflict involving the United States, Israel and Iran have added to inflation pressures, while President Donald Trump has repeatedly called for lower rates and challenged the Fed’s independence.