In Brief: Trigger Index Sees Fed Holding Rates Steady

The Federal Reserve will not change interest rates Tuesday, according to the "Fed trigger index" compiled by Comerica Inc., which forecasts the probability of monetary moves by the central bank.

The index, a monetary model that also takes account of market expectations shows a zero percent chance that the Fed will either raise or lower rates, and a 100% likelihood that rates will be left unchanged.

"Regardless of recent speculation about rate hikes, the Fed will hold the line on rates because inflation remains under control,"said Comerica economist William T. Wilson. "In addition, any rate increase now would further destabilize East Asian economies and exacerbate the unrest in Indonesia."