Fed Set for Rate Hike as Inflation Concerns Mount

The US Federal Reserve is set to announce its interest rate decision at 11:30 pm IST on Wednesday, concluding its two-day policy meeting. The decision will be followed by Fed Chairman Kevin Warsh's press conference at around midnight IST.

A Reuters poll of 101 economists found that 86 expected the Fed to raise rates by 25 basis points to 3.75-4 per cent at the September meeting, a major change from the previous week's poll where more than two-thirds of economists expected rates to remain unchanged.

Interest-rate futures were also pricing in close to a 90 per cent probability of a hike. Inflation remains the main concern, with the US Consumer Price Index (CPI) rising 0.4 per cent in August, following a 0.1 per cent increase in July, according to the Labor Department's Bureau of Labor Statistics.