Fed meeting live updates: Spiking oil and inflation angst complicates central bank's rate outlook
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The Federal Reserve is expected to keep its key interest rate at the target range of 3.5% to 3.75%. Traders will be listening closely for next steps on policy.
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The Federal Reserve is widely expected to keep a steady hand on its overnight lending rate when it announces its policy decision on Wednesday at 2 p.m. ET, maintaining a target range of 3.5% to 3.75%. The policymakers' move comes at a key time for investors: Oil prices have been surging amid the Iran war, with Brent futures topping $109 a barrel at one point Wednesday. The producer price index report for February also came in hot, leading futures markets to sharply curtail the outlook for rate cuts this year. Fed funds futures trading now suggests there won't be any realistic shot at a cut until at least December, according to CME Group's FedWatch tool. Traders will also keep an ear on Fed Chair Jerome Powell 's press conference at 2:30 p.m., searching for hints on what might be next for policy, particularly as inflation fears are swirling. 1 Min Ago Where markets stand as the rate decision approaches The three major averages were lower around 1:40 p.m. ET, as the Fed's interest rate announcement approached. The S&P 500 was down 0.7%, and the Nasdaq Composite was off about 0.7%. The Dow Industrials were last lower by roughly 450 points, or nearly 1%. The 10-year Treasury note yield inched higher by 2 basis points to 4.23%, while the rate on the 2-year note added nearly 4 basis points, trading at 3.714%. — Darla Mercado 4 Min Ago Traders dial back expectations for the next Fed rate cut Inflation worries are spiking, thanks to a hot wholesale inflation reading on Wednesday, and that's spurring traders to consider the likelihood that the Fed may not be cutting rates until much later this year. The producer price index reading for February came in at 0.7%, surpassing the Dow Jones consensus of 0.3%. At the same time, oil prices have been on a runaway surge, with Brent crude futures up nearly 50% since the start of the Iran War. Fed funds futures trading is now looking at a less than 60% likelihood that the central bank will ease up on policy in December, according to th...
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