Fed Seen Holding Rates, Goldman Flags December Hike
SingTao · 1 SOURCESabout 2 hours ago1 MIN
Summary
The US Federal Reserve is expected to keep rates unchanged when it announces its policy decision early Thursday Hong Kong time, after a two-day meeting this week. Markets are watching closely for any shift in the central bank’s assessment of inflation and the likely path of future interest rates.
Key Points
- The Federal Reserve is scheduled to announce its rate decision at dawn on Thursday, October 29, Hong Kong time, after meeting on Tuesday and Wednesday.
- Market expectations broadly point to no change this week, with CME FedWatch showing about a 10% chance of a 0.25 percentage-point increase.
- Goldman Sachs said current US inflation pressure still appears temporary and estimated the Fed may raise rates once more at its December policy meeting.
- The bank also said a halt to further rate increases cannot be ruled out, underscoring uncertainty over the Fed’s next move.
- Goldman noted Brent crude rose about 6% last week to around US$117 a barrel, shifting market concern from inflation toward risks to economic growth.
Why It Matters
For Hong Kong investors, the immediate issue is less the expected hold this week than how the Fed frames inflation and growth risks, because that can quickly affect rate expectations and market sentiment. Goldman’s comments on oil prices and uneven performance in technology shares also point to a more fragile backdrop for equities and risk assets.