The Federal Reserve is expected to hold rates steady, but faces a difficult path ahead amid leadership upheaval and fears of accelerating inflation because of the Iran war.
Policymakers must balance a soft labor market with intensifying concern that rising global energy costs will drive consumer-price growth.
Though traders are betting on no change to borrowing costs, they are eagerly awaiting fresh Fed economic projections and will be looking for signs of dissension on the rate-setting committee: Recent Trump administration appointees have proven to be more dovish than their colleagues, resulting in a divided Fed months before a new chair is due to take over the central bank’s leadership.
