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Will the Federal Reserve raise interest rates? Here is what experts predict for July's meeting.
CBS News • • business
Key Points:
- The Federal Reserve is expected to keep interest rates unchanged at its July 29 meeting, maintaining the benchmark rate in a target range of 3.5% to 3.75% for the fifth consecutive time.
- Rising oil prices, which recently surpassed $100 a barrel, have increased inflation concerns and led investors to raise the likelihood of a potential rate hike later this year.
- The CME Group's FedWatch tool shows a 38% chance of a rate increase at the upcoming meeting, up from 12% a week earlier, though most experts still predict the Fed will hold steady.
- Fed Chair Kevin Warsh has committed to returning inflation to the 2% target but is providing limited forward guidance, making it difficult for economists to gauge the Fed’s future policy moves.
- Experts note that while a July hike is unlikely, the September meeting could be pivotal depending on inflation trends, with some forecasters assigning a 40% chance of rate increases before the end of the year.
