Fed seen holding rates at 3.75%-4% as October meeting nears
What's next: Futures imply less than a 10% chance of an October hike, but most traders still expect at least one more increase by year-end.
The Federal Reserve is widely expected to keep its benchmark rate unchanged at 3.75% to 4% at its October meeting, despite hotter September inflation and a jump in oil prices that has complicated the outlook. Fed funds futures put the odds of a hold above 90%, even after the consumer price index rose 3.7% from a year earlier and producer prices also came in above expectations. Markets are now focused on whether the central bank leaves the door open to a December increase. Brent crude recently touched a five-month high, adding to concerns that energy costs could keep price pressures elevated and test the Fed's credibility on inflation.