East Jincheng: The Federal Reserve still has the possibility of continuing to raise interest rates in 2027.

The Federal Reserve released the October FOMC meeting statement at 2:00 a.m. Beijing time on October 29, announcing that it would keep interest rates unchanged. In response, Orient Jin Cheng stated that the hawkish stance of the Fed's October meeting has not faded. Two voting committee members advocated continuing to raise rates, among them Governor Cook, previously regarded as a centrist, cast a dissenting vote for the first time, indicating that tolerance for inflation risk within the Fed has further declined; however, most committee members chose to observe the effects of policy after the September rate hike, and monetary policy has thus entered a stage of prudent observation and discretionary decision-making. Starting in 2027, the Fed will reduce the number of formal interest rate decision meetings, mainly to free up strategic space for advancing the restructuring of the balance sheet system; this has limited impact on interest rate decisions themselves, but will increase market pricing volatility and the room for speculation. Looking ahead, with international oil prices running high combined with sticky core inflation, there is a relatively high probability that the Fed will raise rates by another 25 basis points at its December meeting, lifting the rate to the 4.00% to 4.25% range, and there remains the possibility of further rate hikes in 2027 thereafter.