After taking a breather in June, the Federal Reserve is all but assured to raise interest rates by another 0.25% this week with Fed Chair Jay Powell expected to leave the door open to additional rate hikes later this year.
A 0.25% rate hike would mark the central bank’s 11th rate hike in nearly a year and a half and take its benchmark interest rate — the fed funds rate — to a range of 5.25%-5.50%, a 22-year high.
The Fed’s two-day policy meeting will kick off on Tuesday, with the central bank expected to announce its monetary policy decision at 2:00 p.m. ET on Wednesday. A press conference with Powell will begin 30 minutes later.
Data from the CME Group shows traders assigning a 99.8% chance of the Fed raising rates by 0.25% on Wednesday.
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