Federal Reserve expected to announce interest rate increase – live

According to a Duke University survey of 32 former Fed governors, regional presidents and staffers, 29 endorsed a rate hike, two didn’t respond and one said the Fed should stay on hold. “ The Fed and new chair’s credibility is on the line ,” one former official said. Another participant said: I am no longer confident that PCE inflation will return to 2% in the next year or two without the Fed raising interest rates. Above all, the upside risks to the inflation outlook have worsened since July: energy prices have not reversed as expected, tariff pass-through continues, and the AI build-out is adding to price pressures . Another person said: Earlier in the year, it appeared that there was some hope that inflation would decline closer to its 2 percent target within a year or two. That now appears less likely. While some of the effects of tariffs and war-induced shortages may manifest as price-level effects, with temporary inflation consequences, it’s hard to have much confidence in that. Thus, a more sustained increase in inflation is quite possible. Clearly, none of those who responded to the poll backed a rate cut, which Donald Trump has been pushing for. However, they also didn’t think dramatically high rate increases would be necessary to tackle the inflation challenge.