Fed Expected to Hold Rates at 3.75%-4% as Inflation Stays Elevated

The Federal Reserve is expected to leave its benchmark interest rate unchanged at 3.75% to 4% when it releases its policy statement at 2 p.m. ET on Wednesday, according to most economists and Wall Street analysts. Policymakers are meeting this week to decide whether to raise rates for a second time this year to curb inflation. In September the Fed raised the federal funds rate by a quarter of a percentage point, its first increase in three years. Headline consumer prices rose at a 3.7% annual rate in September as energy costs jumped, while core inflation, which excludes energy, rose 2.6% from a year earlier. The Fed targets 2%. The Labor Department said gasoline, which has stayed above $4 a gallon for three months, accounted for more than half of September's increase. Thomas Ryan of Capital Economics wrote that officials still appear intent on tightening at a measured pace. The European Central Bank and Bank of Japan are also expected to hold rates this week, and Alphabet, Amazon and Microsoft are due to report earnings.

Left-leaning coverage, represented by CBS News, frames the story as a question about whether the Fed will raise rates, and leads with the expected hold. It supports this with the 3.7% and 2.6% inflation figures, the gasoline price data, the September hike and the Capital Economics quote. Right-leaning outlets had not reported this story at the time of writing, while left-leaning and alternative outlets had, so there is no right-side framing to compare. Alternative outlets agree on the expected hold but differ in emphasis. AP's "5 things to watch" piece looks for clues in the statement about the Fed's next move. Semafor places the Fed alongside the ECB, Bank of Japan, Big Tech earnings, a possible Anthropic IPO filing and election-related energy price risks.