Fed Set to Hike Rates Amid Global Economic Pressures

The Federal Reserve is set to make its first interest rate hike in over three years, despite President Donald Trump's call for lower rates. Fed Chair Kevin Warsh has boxed himself into a rate hike after delivering a speech last month warning that inflation remains above the Fed's 2% target.

Economists say the recent data showing stubbornly high inflation bolsters expectations for higher rates, which can slow borrowing and cool costs. This puts Warsh on a collision course with Trump, who wants the Fed to cut interest rates.

The market is anticipating a rate hike, with futures for the S&P 500 gaining 0.2% on Wednesday. Oil prices declined, with Brent crude falling 1.1% lower to $107.61 a barrel, and benchmark U.S. crude dropping 2% to $103.70 a barrel.