What to expect from the Fed today

By Rachel Siegel

(CNN) – The Federal Reserve is widely expected to keep interest rates steady on Wednesday, even as officials weigh another hike this year to tame rising inflation.

Central bankers have struggled to tame inflation for years. But gas and energy prices have been on an upward climb since the war in Iran began, and came in hotter than expected in September.

Still, the Fed’s moves may only do so much. Tweaking interest rates can’t bring down gas prices, for example. Rates are designed to slow or stimulate the economy broadly and without targeting individual industries.

At his 2:30 p.m. press conference, Fed Chairman Kevin Warsh is likely to face questions on the Fed’s next move. His answers may be brief: Warsh has come out strong against any “forward guidance,” which was used for years to tee up future decisions.

Warsh may also face questions as to whether the Fed held off on a hike because of political pressure just days before the midterm elections.

Fed leaders defend their independence. Meanwhile, President Donald Trump has repeatedly attacked the central bank for not lowering rates, and his approval rating has tanked over cost-of-living issues.

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