The US Federal Reserve (Fed) has left interest rates unchanged. In line with market expectations, the interest rate remained steady in the 3.75% to 4% range.
Macroeconomic data in the US is being closely monitored. The likelihood of action on interest rates is increasing to prevent further deterioration in inflation.
Markets are pricing in another 25 basis point hike in December. Recent inflation data has reinforced concerns over persistent price pressures. The annual US inflation rate rose to 3.7% in September, up from 3.4% in each of the previous two months and above the market expectation of 3.6%, a situation largely driven by the rise in energy prices.
Meanwhile, producer prices increased by 6.3% on an annual basis, marking the fastest rise since December 2022 and significantly exceeding expectations of 5.3%. High oil prices appear likely to continue exerting upward pressure on inflation.
The Fed will announce its next interest rate decision on December 18, 2026.
News Source: 12punto
