New York, Sept 16 : Global financial markets remained relatively steady on Wednesday as investors awaited the U.S. Federal Reserve’s interest-rate decision, with attention focused on the central bank’s policy outlook amid persistent inflation pressures and elevated energy prices.
The Federal Open Market Committee is scheduled to announce its decision at 2 p.m. ET, followed by Federal Reserve Chair Kevin Warsh’s press conference at 2:30 p.m. The two-day policy meeting began on September 15.
The Fed is widely expected by economists to raise its benchmark interest rate by 25 basis points, which would mark its first rate increase since 2023. A Reuters poll found that 85% of economists expected such a move, with inflation and higher energy costs contributing to the shift in expectations.
U.S. stocks were broadly firm ahead of the announcement, while Treasury yields remained close to the 5% threshold. The 10-year Treasury yield had recently moved above 5%, its highest level in years, before easing somewhat on Wednesday.
Oil prices also retreated modestly after recent gains, with Brent crude trading around $107 a barrel. Elevated energy prices have added to concerns over inflation and increased pressure on central banks to maintain tighter monetary conditions.
The Fed’s decision comes against a backdrop of heightened geopolitical tensions in the Middle East, which have contributed to higher oil prices and renewed inflation concerns.
Markets are also closely watching Warsh’s comments for indications about the future path of interest rates. Recent reports have highlighted differences between the Fed’s inflation concerns and President Donald Trump’s preference for lower borrowing costs.
Investors are expected to focus not only on the rate decision but also on the central bank’s assessment of inflation, economic growth and financial conditions, as well as any signals about future policy moves.
The dollar has remained relatively firm ahead of the decision, while global investors have largely adopted a wait-and-see approach before the Fed announcement.
