Investors are betting that the Federal Reserve will not change its prime lending rate, with the S&P 500 futures up on Wednesday, according to the New York Times. The Fed’s decision to pause its hawkish anti-inflation policy, which has seen 10 consecutive rate increases, will be a relief to the stock market, which has seen a boom in recent months. The Fed’s chair, Jay Powell, is expected to suggest that the economy is still running hotter than expected, with the Consumer Price Index report putting “core” inflation well above the Fed’s 2% target. The decision is expected to represent a pause, not a reversal, of the policy.
