Fed Expects First Rate Hike Since 2023 Amid Inflation Worries

The US Federal Reserve began its two-day policy meeting on September 16th, with markets anticipating a 25 basis point interest rate hike. This would be the Fed's first rate increase since the post-pandemic tightening cycle ended in 2023.

Expectations for a hike have grown as US inflation remains above the Fed's 2% target, exacerbated by higher energy prices and geopolitical tensions in West Asia.

The decision on interest rates will be announced on September 17th at 11:30 PM IST. Beyond the rate decision, investors are keenly watching the Summary of Economic Projections, or 'dot plot', for clues on future interest rates, inflation, and economic growth.