Federal Reserve Announces Rate Decision

It is expected that the U.S. Federal Reserve will announce its interest rate decision today, with strong prospects of remaining unchanged at levels between 3.5% and 3.75%. Although markets mostly anticipate a hold, statements from bank officials suggest the possibility of a rate hike if inflation continues to rise, with expectations of an increase in September if inflation remains elevated above the 2% target. The Consumer Price Index experienced a surprising decline of 0.4% in June, but recent market developments indicate anticipation of upcoming data to inform the final decision.