Kevin Warsh-Led Fed Faces Inflation Test Ahead Of Midterms As Stephen Moore Calls For Another Hike: Crypto Bettors Weigh In

The Federal Reserve is scheduled to announce its interest rate decision on Wednesday. The Fed raised rates by 25 basis points in September, bringing its benchmark range to 3.75%–4%.

Here’s What Experts Are Saying

The upcoming Fed meeting comes a week before the Nov. 3 midterms

Heather Long, chief economist at Navy Federal Credit Union, called Inflation the “No. 1 problem in the U.S. economy,” according to a CNBC report. She added that the rate will not be hiked in October as it’s “right before an election.”

The Fed has usually maintained rates during previous election cycles, barring four times, according to Mark Shore, director and economist, CME Group. “Using history as a guide, the Fed has established a reputation of refraining from monetary policy changes near an election date,” Shore said.

CME Group’s FedWatch tool’s projections show markets pricing in an 89.5% likelihood of the Federal Reserve leaving the current interest rates unchanged during October’s meeting.

Stephen Moore Says Rate Hike Needed To Tackle Inflation

Former economic adviser Stephen Moore said another interest rate hike is needed to tackle persistent inflation, even as President Donald Trump demands lower borrowing costs.

He said Federal Reserve Chair Kevin Warsh is in a "tough position" but said that another rate hike is needed to keep inflation down.

The Bureau of Labor Statistics (BLS) reported that annual inflation accelerated to 3.7% in September from 3.4% in August. Gasoline prices jumped 9.1% during September, accounting for more than half the monthly increase.

Trump had earlier demanded interest rates of 1% or lower, criticizing the September hike.

Here’s What Prediction Market Is Saying

Polymarket, a Polygon (CRYPTO: POL) based prediction platform that allows users to wager on an outcome using the USDC (CRYPTO: USDC) stablecoin is currently betting on a contract, "Fed Decision in October?"

Over $74 million has been bet on the contract so far.

Bettors have placed a 94% probability that there will be no change in interest rates, while placing a 7% probability on a "25 bps increase."

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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