An expected Fed hold may be tested by inflation data a day later

The Federal Reserve is widely expected to hold its benchmark rate at 3.75% to 4.00% on Wednesday, Oct. 28, CNBC reported, though Bank of America expects a quarter-point hike, according to CNBC. The Fed’s preferred inflation gauge comes out Thursday morning, Fidelity reported. In mid-October, hike odds rose with a hotter-than-expected consumer price report. Read together, the stories may show a decision markets largely expect, with inflation data a day later able to test it.

Theory - analysis