Isophoric News · Tuesday, October 27, 2026
Markets expected the Fed to hold rates on Wednesday, with attention on what Chairman Warsh signaled
CNBC reported Tuesday morning that markets "overwhelmingly" expected no change in benchmark interest rates when the Federal Open Market Committee released its decision on Wednesday, after September's quarter-point increase. CME Group's FedWatch tool showed about a 10% chance of a rise this week and better than an 80% chance of one in December, CNBC said. September's consumer price index showed annual inflation of 3.7% and core inflation of 2.6%, up 0.3 percentage points from August, according to CNBC. CNBC quoted Deutsche Bank's Brett Ryan saying Chairman Kevin Warsh was expected to signal that further tightening would be needed over time, and Evercore ISI's Krishna Guha saying the Fed's approach carried "material execution risk." Citigroup economists forecast a hike in December, CNBC reported, while Allianz's Mohamed El-Erian said he expected more increases but called them the wrong policy.