Fed Holds Rates Steady as Economists Debate Hike or Cut

The Federal Reserve is expected to hold interest rates steady at its September 15-16 meeting and for the rest of this year, according to a majority of economists in a Reuters poll. The economists predict that the federal funds rate will remain in the 3.50%-3.75% range next week, down from 90% in August.

About 70% of economists, 65 of 93, expect rates to stay on hold for the whole year, down from 80% in recent months. The rest expect at least one hike, more than double the share last month.

Economists are divided about what comes next for rates, with some predicting a quarter-percentage-point increase, which would be the first since July 2023. Others expect the Fed to cut rates, as Jefferies does.