Fed Set to Hike Rates Amid Inflation Fears Fuelled by Tariffs and Conflict
The Federal Reserve is expected to raise interest rates this week due to inflation pressures driven by President Trump's tariffs and the ongoing Iran conflict. These factors have disrupted supply chains, pushed oil prices higher, and contributed to persistent inflation. Fed Chairman Kevin Warsh faces a credibility test to show the Fed's independence and willingness to combat inflation despite political pressure.
Markets anticipate multiple rate hikes through early next year as inflation risks remain elevated. Kroger reported mixed Q2 earnings with adjusted EPS of $1.09 beating estimates, but revenues slightly below expectations at $34.62 billion. Despite slower sales growth, Kroger maintained its full-year adjusted EPS guidance of $5.10 to $5.30, supported by digital growth.