Fed Fails Again: Trump Policies and AI Boom Fuel Inflation as Rate Hike Looms

The US Federal Reserve is set to meet this week and raise interest rates to combat high inflation, according to market expectations. The world's largest economy has struggled with above-target inflation for years, fueled by factors such as President Donald Trump's tariffs and the ongoing AI boom.

The Fed has maintained its current rate since January, choosing to wait and observe the effects of energy price shocks and tariff policies. Analysts say that central bank chief Kevin Warsh's credibility is on the line if he fails to address inflation concerns.