Why the Fed's Rate Decision Will Likely Be a Last-Minute Call
When the Federal Reserve sits down Wednesday to decide whether to raise interest rates again, it will likely be a game-time decision.
Fed Chair Jerome Powell said that the central bank will make decisions on interest rate moves on a "meeting by meeting" basis.
Last month, the Fed raised its benchmark interest rate to a target range of 5%-5.25%, the highest since 2007.
Read more: Find the best high-yield savings account rates for June 2023
Officials will need to decide whether the 10 interest rate hikes so far will be enough in time to cool inflation, or whether more action is needed now. And a key data point — the consumer price index for the month of May — arrives Tuesday as the Federal Open Market Committee begins two days of meetings.
“Inflation is not as low as they want, but heading in right direction," Luke Tilley, chief economist for Wilmington Trust, said in an interview. "CPI is the last possible fly in the ointment that could knock them off a pause."
The Fed will announce its policy decision at 2:00 p.m. ET on Wednesday with Powell set to speak with the media beginning at 2:30 p.m. ET.