U.S. stocks are rising on optimism ahead of Fed rate decision By Investing.com

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U.S. stocks are rising on optimism ahead of Fed rate decision

later Wednesday, and is widely expected to keep interest rates steady at a range of 5.25% to 5.50%, after having boosted them from near zero in around a year and a half in an attempt to control inflation.

While many investors believe the Fed will be done with rate hikes this year, there are some that still think another rate increase is possible in November, or perhaps December. Last week’s data signaled an easing in core inflation, but surging oil prices resulted in the headline inflation figure posting its fastest growth rate in 14 months.

With this in mind, all eyes will be on Chair Jerome Powell’s press conference after the rate announcement for any additional clues over future policy, as well as the Fed's latest estimates for the economy, including year-end projections for inflation, unemployment, and gross domestic product.

The S&P 500 is up over 15% so far this year, largely driven by a rally in some large growth stocks, such as Nvidia (NASDAQ:

 

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