Federal Reserve Holds Interest Rates Steady Through December

Allianz Research analysts predict the Federal Reserve will maintain its policy interest rate at 4.25%-4.50% through December, postponing expected rate cuts initially anticipated in October. This decision is driven by a revised forecast that U.S. inflation will peak in early Q4 rather than Q3. Analysts believe the Federal Reserve will refrain from easing monetary policy during this period of high inflation, as indicated by current market expectations for unchanged interest rates at next week’s FOMC meeting.