Fed Expected to Hold Rates Steady But More Hikes Likely as Economy Shows Resilience Despite Inflation Risks

The Fed is expected to hold interest rates steady at its meeting today, but may hike rates again in December if inflation remains elevated.

Inflation has cooled slightly but remains well above the Fed's 2% target. Some Fed officials believe rates may need to rise further to tame inflation.

The US economy has shown resilience despite 11 Fed rate hikes, with strong consumer spending, solid job growth, and low unemployment.

However, economic risks remain, including high inflation, rising bond yields, tighter lending standards, and geopolitical tensions.

Some economists remain optimistic the Fed can defeat inflation without triggering a recession, relying on a resilient consumer and steady job market.