Federal Reserve expected to tap brakes on rate hikes

The decision would represent a win for the Trump administration, whose allies have urged the central bank against hiking just days before midterms. The Federal Reserve is widely expected to leave interest rates unchanged Wednesday before raising them again in December. The decision would represent a win for the Trump administration, whose allies have urged the central bank against hiking just days before the midterms. Though Fed Chair Kevin Warsh continues to provide little indication of which way he’s leaning, other officials have recently signaled a desire to tread carefully as they parse a myriad of conflicting data points — from bottoming-out consumer sentiment to a booming stock market to soaring bond yields. “The decision will not be without controversy” because “they now run the risk of falling behind,” TD Securities analysts wrote Friday. They predicted three officials would dissent from a decision to hold, as some remain convinced the Fed should move faster to tamp down inflation while the Iran war continues to drive up prices.