Fed on Hold But Providing Clues on Future Rate Hikes

The Fed is expected to hold interest rates steady at its meeting on Wednesday, but Fed Chair Jerome Powell's comments will be closely watched for hints about future rate hikes.

The Fed has raised rates this year to fight high inflation, pushing up borrowing costs for mortgages, credit cards, auto loans, etc.

Traders will look for clues if more rate hikes are coming or if the Fed will pause. Some expect no more hikes but others say more are possible.

Though inflation has eased, consumer spending remains strong which could lead to more rate hikes. However, signs spending may slow suggest the Fed could remain on hold.

With conflicting economic data, experts say the Fed likely remains in wait-and-see mode about further rate hikes. Its statement and Powell's comments will provide insight.