The Federal Reserve is widely expected to hold interest rates steady at the conclusion of its two-day meeting on Wednesday amid signs of sticky inflation.
Just a few months ago, Wall Street was confident that May would mark the beginning of a barrage of interest rate cuts by the Federal Reserve. But a string of hotter-than-expected inflation reports at the beginning of the year has poured cold water on those expectations, and the debate has gradually shifted from how many times the Fed will cut rates this year, to whether it will trim them at all. Fed officials are widely expected to hold interest rates steady at a range of 5.25% to 5.
Powell said last week that policymakers will "maintain the current level of restriction for as long as needed" until price pressures are tamed, opening the door to a higher-for-longer stance. "The recent data have clearly not given us greater confidence, and instead indicate that it’s likely to take longer than expected to achieve that confidence," he said. "That said, we think policy is well positioned to handle the risks that we face.
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