Despite September CPI and PPI coming in above expectations and inflationary pressure from ongoing AI infrastructure activity and elevated energy prices, markets expect the Fed to hold the federal funds target at 3.75–4.00% on Wednesday. Several senior Fed officials signalled no rush to hike this month. Cleveland and Dallas Fed presidents could dissent if the Fed holds, and both have previously said policy likely needs further tightening.

2026-10-28

Despite September CPI and PPI coming in above expectations and inflationary pressure from ongoing AI infrastructure activity and elevated energy prices, markets expect the Fed to hold the federal funds target at 3.75–4.00% on Wednesday. Several senior Fed officials signalled no rush to hike this month. Cleveland and Dallas Fed presidents could dissent if the Fed holds, and both have previously said policy likely needs further tightening.