Surge in interest rates and a cloudier economic picture to keep Federal Reserve on sidelines

The Federal Reserve is poised to leave its key interest rate unchanged at a time when the Fed faces an economy that has proved resilient but is nevertheless under pressure from surging interest rates, overseas turmoil and anxious investors. U.S. economic growth surged in the July-September quarter on the back of robust consumer spending, and inflation showed signs last month of staying uncomfortably high. Chair Jerome Powell will want to make sure that the economy cools and that inflation resumes its descent before signaling any let-up in the Fed’s drive to slow inflation to its 2% target level.