Federal Reserve expected to hike interest rates 25 basis points at FOMC meeting

The Federal Reserve is holding a closely watched monetary policy meeting this week as the market expects the central bank to hike interest rates amid concerns about stubborn inflation.

Policymakers have held interest rates steady at all five meetings held by the Federal Open Market Committee (FOMC) this year, with the benchmark federal funds rate sitting at a target range of 3.5% to 3.75%.

Persistent inflation above the Fed’s 2% long-run target has prompted concern among policymakers and has shifted the market’s outlook to anticipating a rate increase this week, with the CME FedWatch tool showing a 92.5% chance of a 25-basis-point hike versus…

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