Fed to hold rates steady, but hike possible as oil prices rise
The Federal Reserve is widely anticipated to pause its rate-hiking campaign on Wednesday, though officials are not ruling out further tightening if rising crude oil costs push inflation higher.
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The U.S. Federal Reserve's policy decision on Wednesday is set to keep the benchmark interest rate unchanged, according to widespread market expectations. Yet, the central bank's accompanying statement and press conference will be scrutinized for any hawkish signals.
Policymakers are increasingly concerned about the impact of surging crude oil prices on the inflation outlook. While a hold is the baseline scenario, the door remains open for an additional rate hike later this year if energy-driven price pressures persist.
Source: FXStreet Forex News