Fed Holds Off on Rate Hike as Oil Prices Surge

The Federal Reserve's next meeting is expected to be a closely watched event as investors and economists try to determine whether interest rates will rise or remain steady. According to CBS News, the Fed is likely to keep its benchmark rate unchanged at 3.5% to 3.75%, marking the fifth consecutive meeting without a rate hike.

Rising oil prices have increased the probability of a rate hike later this year, with investors betting on a higher likelihood of a rate increase. The CME Group's FedWatch tool now shows a 38% chance that the central bank will hike its benchmark rate next week, up from 12% just a week earlier.

However, most experts still expect the Fed to hold off on raising rates in July. Gregory Daco, chief economist for EY-Parthenon, said that while a July rate hike is highly unlikely, the September FOMC meeting could be the first meaningful test of whether inflation remains under control.