Fed Interest Rate Decision Looms as Retail Sales Update Nears

The Federal Reserve's interest rate policy will be under scrutiny this week as it concludes its two-day meeting on Wednesday. The central bank is considering raising its benchmark interest rate to combat stubbornly high inflation, which has been above 3% for some time.

This move would make borrowing more difficult and slow economic growth, potentially cooling inflation. However, President Donald Trump has been urging the Fed to lower interest rates instead, which could give the economy a boost but also worsen inflation.

The update on US retail sales for August on Wednesday may provide further insight into how people are spending their money amidst higher inflation and slower wage growth.