Fed to announce interest rate decision tonight

Markets widely expect the Fed to keep its benchmark interest rate unchanged at 3.75%–4.00%. After raising rates in September for the first time in three years, the central bank is expected to refrain from another increase at its October meeting despite rising energy costs and inflationary pressures. The decision is scheduled for 9:00 p.m. Türkiye time, followed by Fed Chair Kevin Warsh's press conference at 9:30 p.m.

Annual U.S. inflation rising to 3.7% in September has heightened concerns about the Fed's progress toward its 2% inflation target. However, relatively stable labor market conditions and rising bond yields have strengthened expectations that policymakers will hold rates steady. Investors will focus particularly on signals regarding the possibility of another rate hike in December. The policy statement and Warsh's remarks could trigger volatility in the U.S. dollar, gold, Treasury bonds, and equity markets.