Fed Meeting Today: Central Bankers Likely Won't Move Interest Rates, But Sparks May Still Fly

Group 1 - The Federal Reserve is expected to keep the fed funds rate unchanged at a range of 3.5% to 3.75%, with a 97% probability according to the CME Group's FedWatch tool [1][1][1] - Recent economic indicators suggest improvements in inflation and the job market, although data has been affected by a government shutdown in October and November [1][1][1] - The Federal Open Market Committee (FOMC) consists of 12 members who meet eight times a year to set monetary policy, primarily through adjustments to the fed funds rate [1][1][1] Group 2 - Major equity indexes rose ahead of the Fed's decision, with the yield on the 10-year Treasury increasing to approximately 4.26% from 4.25% [1][1][1] - Analysts are closely monitoring Federal Reserve Chair Jerome Powell's press conference for any unexpected comments that could impact financial markets, particularly bonds tied to inflation expectations [1][1][1] - Only one FOMC member, Governor Stephen Miran, has advocated for steep rate cuts, indicating a general consensus against further reductions at this time [1][1][1]