Fed Interest Rate Update: 99% Likelihood Of Steady Rates This Week

Key Points:

• Fed to announce interest rate decision on September 21; 99% likelihood of no change per CME.
• Market awaits Fed Chairman’s insights on future trends during the accompanying press conference.

Fed interest rate decision on Sep 21: CME suggests 99% chance of no change. Focus on Chairman’s speech for future insights.

On Thursday, September 21, the Federal Reserve is set to make its much-anticipated Interest Rate Decision, accompanied by a press conference. As of now, the Chicago Mercantile Exchange (CME) indicates a high probability, around 99%, of the Fed maintaining its existing interest rates. However, what will be closely scrutinized is the Federal Reserve Chairman’s speech, where insights into future economic trends are expected.

Recent reports from CoinCu suggest that the Federal Reserve was grappling with a divergence of opinions among its officials. Some members are expressing concerns over inflation, while others are advocating for a temporary halt in rate hikes. The timing of potential rate increases is also generating debate, with analysts speculating on a 25 basis points increase in the upcoming meeting, potentially pushing the interest rate target range to 5.25-5.50%.

Previously, Federal Reserve Vice Chair for Supervision, Michael S. Barr, reportedly emphasized the need for caution and oversight in the development of central bank digital currencies (CBDCs) and stablecoins.

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