Fed faces politically charged rate decision six days before Election Day

The Federal Reserve faces a politically sensitive interest rate decision on Oct. 28, just six days before Election Day, after new data showed inflation accelerated in September, raising the odds of a rate hike. The Consumer Price Index rose 3.7% annually and 0.6% monthly, with core inflation also exceeding expectations at 2.6% annually. This marks the third consecutive election cycle where the central bank may act near voting, following a 2022 hike and a 2024 cut that drew political criticism. President Trump has publicly pushed for lower rates and admitted advising Fed Chairman Kevin Warsh before September's hike, the first in three years. Historically, the Fed has avoided October rate changes in election years 67% of the time, preferring cuts over hikes.