Fed Set to Hold Rates Steady Amid Election-Year Uncertainty

A majority of economists surveyed by Bloomberg expect the Federal Reserve to hold interest rates steady at its upcoming meeting and through the end of 2027, despite increased market odds for a rate hike.

The survey found that just 13 out of 48 respondents believed a rate increase would occur this month, while investors saw a 70% chance of a hike next week.

Economists cited tempering inflation and the proximity of the midterm elections in the US as reasons for policymakers to leave rates unchanged at their September 15-16 meeting and again in October.

Yelena Shulyatyeva, senior US economist at the Conference Board, expected the Fed to hold rates at the next three meetings but warned that any uptick in inflation could change this.