Fed Rate Hike Looms as US Inflation Stays Above Target

The US Federal Reserve is likely to raise interest rates next week due to sticky inflation numbers that continue to trend above target.

According to latest data, US headline and core inflation came in at 0.4% month-on-month and 3.4% year-on-year, respectively, exceeding market expectations.

The core personal consumption expenditure deflator, the Fed's preferred measure of inflation, is running even hotter at 3.3% YoY.

Fed Chair Kevin Warsh has hinted that he will be pushing for a rate hike next week, and a majority on the Federal Open Market Committee (FOMC) is likely to agree with him.