Federal Reserve to announce interest rate decision

(NBC, KYMA) - The Federal Reserve is expected to decide Wednesday whether to raise interest rates to fight rising inflation.

Wall Street expects the Fed to hike rates, while President Donald Trump has repeatedly urged the Central Bank and it chair, Kevin Warsh, to cut rates.

The Ded has not raised interest rates since 2023, when Joe Biden was president and the economy was contending with sky-high inflation.

But market odds for an interest rate increase were at more than 90% Tuesday after inflation data for August came in hot at a 3.4% annual clip.

The Fed's target for inflation is 2%.

Meanwhile, U.S. Treasury bond yields rose to 5.04% Tuesday, the highest since July 2007, amid concerns about rising inflation.

To watch the livestream of the announcement, see attached video.