Markets largely expect the Fed to hold rates tonight, with under a week to
midterms. Deutsche Bank US chief economist Matt Luzzetti says Fed chair Kevin
Warsh will likely justify a pause by noting recent inflation re-acceleration
supports the case for further hikes while an October hold buys time to assess
trends. Luzzetti warned Warsh will avoid any signal that the Fed is unwilling to
take necessary action against persistent inflation, after confusion from July’s
press conference.
