The Federal Reserve is expected to leave interest rates unchanged this week, offering borrowers a reprieve after September's increase. But with inflation gathering momentum and the economy showing few signs of weakening, another hike could follow before policymakers are ready to declare their work finished.
Investors assigned a 90% probability to the Fed holding its benchmark rate at 3.75% to 4.00% at its October 27-28 meeting, according to the CME Group's FedWatch tool. That confidence reflects signals from officials that they can afford to wait, particularly after rising Treasury yields pushed borrowing costs higher across the economy.
