Fed Expected To Hold Rates Steady At November Meeting

Markets firmly expect the Federal Reserve to hold interest rates steady at its next meeting on November 1. This is in line with recent dovish comments from Fed officials and generally benign economic data. The recent rise in longer-term interest rates has also placated the Fed, as Governor Christopher Waller recently stated the Fed is inclined to “let the recent run-up on longer-term rates do some of our work.”

A potential interest rate increase for December or later remains possible, but, for now, the Fed is happy with how the economy is trending and the Federal funds target is likely to remain at its current 22-year high of 5.25% to 5.5%.