Fed to sit tight on rates as oil prices moderate

WASHINGTON (Reuters) – The U.S. Federal Reserve is expected to hold interest rates steady on Tuesday, acknowledging financial conditions remain strained, but making clear it is still worried about inflation despite a recent pullback in energy prices.

Economists say the central bank is likely to tweak the language of its statement, released when announcing its decision, to reinforce the message that the next rate move will be upward, even though price pressures have eased a bit since its last meeting in late June.

But no interest rate hike appears imminent. The Fed is expected to hold off raising rates until the housing sector is more stable.

Reuters