星球日报|Oct 28, 2026 11:59
[Fed Rate Hike Timing Remains Debatable? Officials Diverge on Financial Conditions]
Odaily Planet Daily reports that the Federal Reserve is expected to keep interest rates unchanged this week, but officials remain significantly divided on whether financial conditions are sufficiently tight. This debate is becoming a crucial factor in determining whether the Fed needs to continue raising rates and when to take its next step.
Some Fed policymakers believe that despite the significant rise in Treasury yields, stock prices, credit supply, and business investment activity indicate that overall financial conditions remain loose and insufficient to effectively curb inflation. Other officials are more focused on economic data and believe that further evidence can be waited for before adjusting interest rates.
The Fed will conclude its two-day monetary policy meeting early Thursday morning Beijing time. The market widely expects policymakers to maintain the target range for the federal funds rate at 3.75% to 4.00%, following the Fed's unanimous agreement to raise rates by 25 basis points in September. Investors currently anticipate the next rate hike may occur at the meeting on December 8-9.
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