After leaving interest rates unchanged at its June meeting for the first time since March 2022
The other road could undo the progress that has been made in getting inflation closer to the Fed’s 2% target if consumers might not have an adequate reason to stop spending,
Traders are convinced the Fed will pick the first option at its meeting this week, according to the CME FedWatch Tool.
But there’s less of a consensus as to which road the Fed will take at future meetings.
The Federal Reserve could surprise some who were lulled into imagining that interest rates would stop climbing as one rate pause last month surely could signal one move after another by the Fed to hold rates steady.
Get ready for one more rate hit – the 11th interest rate hike since March 2022 — when the Fed announces its decision on rates on Wednesday.
Bill Adams, chief economist for Comerica Bank, expects the Federal Reserve to raise the federal funds rate by a quarter of a percentage point.
In a note to investors, Adams indicated that he expects the Fed will signal Wednesday that another “skip” or pause is likely at its meeting on Sept. 19 and Sept. 20.