Fed Set to Hike Rates Despite Trump's Pleas

The Federal Reserve is facing pressure to raise interest rates this week to combat high inflation, putting Chairman Kevin Warsh on a collision course with President Donald Trump. Trump has repeatedly called for lower interest rates, but economists are predicting that the Fed will ignore his wishes and hike rates by 25 basis points.

This decision would be in line with market expectations, as many analysts believe that the high inflation numbers recently released have sealed the deal for a rate increase. If the Fed does not raise rates this week, it could be more damaging to the market than if they actually do.

The key will be how Chairman Warsh handles questions about future rate hikes during his press conference. He may prefer to provide little guidance, but this will be difficult given the high level of uncertainty surrounding oil prices and global events.