Federal Reserve FOMC Meeting Begins Amid Expectations of a Rate Hike and Further Tightening

The Federal Reserve's two-day Federal Open Market Committee (FOMC) meeting commenced today, with markets widely anticipating an interest rate hike, currently priced at a 92% probability. Market participants also expect this to be part of a broader tightening cycle, with further hikes projected before year-end and into the first half of 2027, driven by recent economic data showing a strong labor market and persistent inflation.