Fed Holds Rates Steady but May Hike by Year-End
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- The Federal Reserve's Federal Open Market Committee kept the benchmark federal funds rate unchanged at its Aug. 28-29 meeting, though the source notes the FOMC "could well follow suit" by raising rates before year's end.
- The bond market has been pushing interest rates higher in recent weeks, leading the broader rate trend that the FOMC is now expected to track.
Why it matters: With the bond market already pushing rates higher on its own and the FOMC signaling it "could well follow suit" before year-end, borrowers and bondholders face a near-certain path to higher US interest rates regardless of what the Fed does at its next meeting.
