Fed Rate Decision Clouded by Inflation Fears and Oil Price Volatility

The Federal Reserve is set to meet this week and most analysts expect them to leave interest rates unchanged. However, renewed hostilities in Iran and rising oil prices have added uncertainty to their decision.

New Fed Chair Kevin Warsh has taken a vague approach to signaling the economy's direction and what policy moves may be needed to restore price stability. The central bank aims to bring inflation back down to 2% after five consecutive years above that target, but Warsh has offered little insight into how this will be accomplished.

Pressure from the White House is also a factor, with President Trump urging the Fed to lower interest rates to boost the economy and reduce borrowing costs. While he praised Warsh as 'fantastic', he acknowledged that the board members are 'very political' and that Warsh wants to do the right thing.