Fed Expected to Hike Rates Despite Trump's Demands

The Federal Reserve is expected to raise its benchmark interest rate on Wednesday for the first time in three years. The move would be aimed at fighting high inflation, which has been stubbornly high despite the Fed's efforts. The current interest rate stands at about 3.6%.

Fed Chair Kevin Warsh has argued that the Fed has not yet achieved its goal of putting inflation in check, and recent inflation reports have 'not told me that underlying trends have improved,' he said.

The move would put the central bank at odds with President Donald Trump's support for a rate cut. However, most analysts and economists expect a hike after Warsh's speech two weeks ago at the Fed's annual conference in Jackson Hole, Wyoming. Traders now see a 90% chance of a rate hike on Wednesday.