Federal Reserve to Set Its Next U.S. Interest Rate

Federal Reserve officials are meeting this week to decide whether to increase rates again as they try to slow inflation. Most economists and market analysts expect no change, leaving the benchmark range at 3.75% to 4%. The announcement is set for Wednesday at 2 p.m. Eastern time.

Prices rose 3.7% over the year through September, while inflation excluding energy and gas was up 2.6%. Gasoline, above $4 per gallon for three months, made up more than half of September’s increase. The Fed’s annual inflation goal is 2%, putting continued pressure on officials as households manage higher costs for fuel, food, utilities and other expenses.

The September increase lifted the federal funds rate by one-quarter percentage point and raised borrowing costs across the economy, making this week’s decision relevant to Spokane households and businesses. Traders put the chance of an October hold at 88%. Economists and investors generally anticipate one additional increase before year-end, likely at the Fed’s final meeting on Dec. 8-9; there is no November meeting scheduled. Chairman Kevin Warsh is expected to speak with reporters after the decision.