The Federal Reserve is expected to hold interest rates steady at their current 3.5%-3.75% range during Wednesday’s meeting. Several officials, including Dallas Fed President Lorie Logan, Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari and Governor Christopher Waller, have signaled support for further tightening should inflation persist. Markets are pricing in approximately 64% probability of no change this week, with a likely hike in September. The consumer price index unexpectedly dropped 0.4% in June, giving the Fed some breathing room, though Middle East volatility has already reversed the temporary decline in gas prices.
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