The Federal Reserve seems expected to choose the “secure” road and meet market expectations of 0.25% raise this week.

“The safest course for the Fed is to go with the market pricing of an increase by 25 basis points”, Zhiwei Ren, MD & Portfolio Manager at Penn Mutual Assets Management says. “The Fed can’t really have a strong belief in this market, in my opinion”

The Federal, however, would probably prefer to wait, according to Zhiwei. Because it is still working to regain credibility, which is a central bank’s most valuable asset.

The Prons and Cons of Rate Hike

Goldman Sachs adds that since returning inflation to 2% is a medium-term objective, a halt in the fight against inflation “should not be such a concern.”

But, the current banking crisis makes the course of the Fed’s rate hikes significantly less predictable than it was before the pressures in the banking system began to surface.

In a statement, Citi predicted that the Fed would not only raise rates by a 25 basis points but also increase its rate-hike plans adds by an additional 25 basis points.