Fed Rate Hike Unlikely Amid Cooling Inflation and Stronger Economic Growth
Wall Street experienced mild fluctuations on Monday, as oil prices continued to rise, exerting pressure on inflation. The S&P 500 was marginally higher in midday trading, while the Dow Jones Industrial Average edged up by 4 points, or less than 0.1%, at 34,623, and the Nasdaq composite remained virtually unchanged.
The market has been oscillating since early August due to uncertainties about the Federal Reserve's interest rate policies. Despite higher rates helping to cool inflation from its peak last summer, they have also negatively impacted stock prices and other investments while slowing the economy.
Traders are almost unanimously expecting the Fed to keep rates steady at its meeting this week, which concludes on Wednesday. The focus will be on the forecasts that Fed officials will publish regarding their expectations for interest rates, the economy, and the job market in upcoming years.
Investors are keenly interested in how high officials at the Fed see its main interest rate rising this year. Traders are betting on a roughly 40% chance the Fed will raise rates again in either November or December, according to data from CME Group (NASDAQ:CME).