Fed Rate Decision Looms as Retail Sales Update Fuels Inflation Fears

The Federal Reserve will conclude its two-day meeting on Wednesday, and investors are eagerly awaiting the central bank's decision on interest rates. The Fed has been holding its benchmark rate steady while monitoring inflation, which has stubbornly remained above 3%.

This is a critical juncture for Wall Street, as higher interest rates would make borrowing more difficult and slow economic growth, potentially cooling inflation. However, President Donald Trump wants the central bank to lower interest rates instead, which could give the economy a boost but worsen inflation.

Wednesday's retail sales update will also provide insight into how and where people are spending their money amid higher inflation and slower wage growth. The data may shed light on the impact of the U.S. war with Iran on global oil prices and household budgets.