Fed Likely to Hold Rates Steady in October, But More Hikes Expected Later as Economy Stays Strong

Fed officials look set to hold rates steady in October, but further hikes are likely later as the economy remains strong.

Recent data showed resilient hiring and higher inflation, making policymakers wary of signaling an end to tightening.

A surge in bond yields since the September Fed meeting may allow a break from hiking at the next meeting.

Officials want to avoid signaling an end to hikes too soon, as that could fuel inflation expectations.

Powell and others remain committed to restoring 2% inflation target, even if it requires raising rates higher than expected.