Federal Reserve Poised to Hike Interest Rates Amid Inflation Concerns

The Federal Reserve is widely expected to raise its benchmark interest rate on September 16 for the first time in three years. This move would put Chair Kevin Warsh at odds with President Donald Trump's demand for a cut, coming just seven weeks before the midterm elections.

Futures markets assign a roughly 90 percent chance of a quarter-point increase to a target range of 3.75 to 4.00 percent, based on a Reuters poll of economists. The expected hike reverses a March projection that foresaw one cut this year.

Warsh has maintained that the central bank must prioritize inflation control, citing 12-month and six-month PCE price index readings of 3.7 and 4.1 percent respectively, against a 2 percent target.