Fed set to make interest rate decision as inflation hits 3-year high

[BumRushDaShow]

Source: ABC News

June 16, 2026, 5:05 AM


The Federal Reserve is set to announce its latest decision on interest rates on Wednesday as the central bank weathers the highest inflation in three years. The announcement will mark the first possible adjustment of the benchmark interest rate since Trump nominee Kevin Warsh began his four-year term as Fed chair last month.

The policy move is also set to arrive at a moment of flux for the nation’s economy, just days after an agreement between the United States and Iran offered hope for some price relief.

The U.S.-Iran accord, set to be formally signed on Friday, came as gasoline prices fell below $4 a gallon for the first time since March. Still, fuel costs stand well above pre-war levels, and an array of grocery prices remain elevated.

Futures markets overwhelmingly expect the Fed to hold interest rates steady when policymakers meet on Wednesday, according to the CME FedWatch Tool, a measure of investor sentiment.

Read more: https://abcnews.com/Business/fed-set-make-interest-rate-decision-inflation-hits/story?id=133758112

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They will leave it but will continue to monitor core inflation that excludes the obvious energy and food prices, as that is still being impacted by a multitude of randomly-applied, poorly-justified tariffs.

[twodogsbarking]

1. Well

Interest rates generally should not be lowered while inflation is high. Central banks, such as the Federal Reserve, typically raise interest rates to combat inflation. By increasing borrowing costs, they slow down economic activity and reduce consumer demand, which helps stabilize prices.

[mdbl]

2. Did Dump's new pick take over yet

I don't expect anything to follow past precedent, or even common sense for that matter.

[Unwind Your Mind]

3. The thing is...

This is not inflation driven by too hot growth, where raising interest rates would serve as a check. This is inflation driven by supply shock and raising rates will only make it worse. Lowering rates would be of a small value and it might be better to hold that back for future use.

I suspect they will hold rates where they are. But, who knows with these people. I’m only a small business accountant with a BS in Finance 🤷‍♀️

[Ray Bruns]

4. This should be fun.