Import sensitive goods categories, such as furnishings and durable household equipment, saw large jumps relative to May May and April headline and core PCE readings were also revised up, in line with the GDP deflator reading released yesterday The June PCE inflation numbers vindicate the Fed’s majority decision to hold rates steady in July.

Just as on most Fed decision days, the hours leading up to this afternoon's interest-rate announcement have been quiet and uneventful. The three major stock indexes were holding their ground in midday trading as investors remained hesitant to make big moves ahead of the rate announcement at 2 p.

Almost no one predicts the Fed will lower rates, but economists predict that the decision, for the first time since 1993, will not be unanimous.