Markets expect the Fed to keep interest rates unchanged this week, and Walsh faces communication challenges
2026-10-27 17:21:03
CoinMeta data: The market generally expects the Federal Reserve to maintain interest rates unchanged at its meeting on October 27-28 this week. Federal Reserve Chairman Kevin Warsh will need to explain the logic behind not raising rates under inflationary pressures and also deal with political pressure. Officials such as New York Fed Chair Janet Yellen, Vice Chair Jerome Powell, and Governor Lael Brainard have previously stated that they could wait a bit longer, which has reduced the probability of a rate hike in October. Stephen Stanley, the chief economist for Santander's U.S. capital markets, expects interest rates to remain unchanged this week but believes that another rate hike is still possible in December. The current policy path clearly aims to maintain high interest rates to observe the lagging effects on the economy, which buys time for subsequent adjustments to monetary policy.
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Source:Internet
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