Fed likely to hold rates steady ahead of midterms

Federal Reserve policymakers face a critical decision Wednesday on whether to continue hiking interest rates to combat inflation that remains stubbornly high. The latest consumer price index report showed annual inflation rising to 3.7 percent in September, up from 3.4 percent the prior month, signaling persistent economic pressures. With midterm elections approaching, the central bank’s move could have significant implications for borrowing costs and consumer spending. The decision comes as officials weigh whether tighter monetary policy is still necessary to cool an inflation rate that has remained elevated.

Federal Reserve officials will decide whether to raise interest rates again on Wednesday, as persistent inflation strains Americans ahead of the midterm elections. Annual inflation was 3.7 percent in September, according to the consumer price index (CPI). That marked an increase from 3.4 percent in August and showed inflation remains entrenched in the economy amid...