US Fed preview: Rate hike or a pause? Experts weigh in

livemint.com:

US Federal Reserve is expected to keep interest rates steady at a 22-year high in its policy meeting on October 31-November 1 even as the US economy remains resilient despite high interest rates while inflation still remains above the Fed's 2 per cent target level. In its last policy meeting, the Fed had left the benchmark interest rates unchanged at 5.25 per cent - 5.50 per cent.

As Mint reported earlier, the gross domestic product (GDP) of the US expanded at an annualised rate of 4.9 per cent in the third quarter, the US Bureau of Economic Analysis (BEA) first estimate showed on Thursday, October 6. The US economy grew at the fastest pace in nearly two years, buoyed by strong consumer spending in spite of higher interest rates, ongoing inflation pressures, and a variety of other domestic and global headwinds.

Meanwhile, inflation has cooled off significantly but remains well above the Fed's 2 per cent inflation target. "The personal consumption expenditures price index, which is the Fed's preferred inflation gauge, rose 3.4 per cent in September from a year earlier, a Commerce Department's Bureau of Economic Analysis report showed on Friday, and the core PCE price index, which the Fed takes a signal for future price pressures, rose 3.7 per cent.

That's down from a 3.8 per cent reading in August but well above the Fed's 2 per cent inflation target, reported Reuters. Experts expect the Fed to keep interest rates at elevated levels for a longer period.