Fed Seen Hiking Rates as Strong Inflation Data Shifts Expectations

The Federal Reserve is expected to raise interest rates on Wednesday by at least 25 basis points to 3.75%-4% in its latest meeting, according to a Reuters Poll of economists.

This decision comes after inflation data showed price pressures remaining strong, with core PCE inflation almost doubling the Fed's 2% target and crude oil futures staying above $100 per barrel.

A total of 86 out of 101 economists surveyed expect the rate hike, a sharp shift from last week's survey where more than two-thirds still expected interest rates to remain unchanged.

In fact, nearly 53% of respondents also believe there will be at least one more rate hike by the end of March, up from 56% who thought so in the previous survey.