Fed holds rates steady with 68.5% odds
The Federal Reserve begins its two-day policy meeting, with an interest rate decision expected at 2:00 p.m. ET on Wednesday.
The central bank is likely to keep interest rates unchanged, but inflationary pressures from the war in Iran could prompt a surprise hike.
Bond traders have placed 68.5% odds that the Fed will hold rates steady and 31.5% odds that it will hike.
The Fed’s decision remains opaque due to the balance of economic forces and by design, as new Fed Chairman Kevin Warsh aims to reduce communication with markets on policy.