Federal Reserve Faces First Rate Hike Test Under Warsh's Leadership

The Federal Reserve is set to announce its monetary policy decision on September 16, with financial markets predicting a 0.25 percentage-point increase in the benchmark rate.

This would bring the range to 3.75-4.00%, and could signal further tightening by the central bank.

Fed Chair Kevin Warsh has avoided forecasting the future path of interest rates, but accelerating inflation and oil prices above $100 a barrel are creating pressure for a rate hike.

The decision will be a test for Warsh, who was appointed by President Trump with expectations that he would cut rates.