Federal Reserve Poised to Hike Interest Rates Amidst Ongoing Inflation

The Federal Reserve is expected to raise interest rates for the first time since 2023 as the US struggles with elevated inflation. The decision comes after a months-long bout of high prices triggered by the Iran war, which has pushed global oil prices near a four-month high and the average price of gasoline above $4.30 per gallon.

Financial markets predict a quarter-point rate hike, which would mark the Fed's first increase since 2023. The odds of this move stand at 94% according to the CME Group's FedWatch tool.

Fed Chair Kevin Warsh has emphasized the need to cool off persistently high prices, stating that 'the Fed's predominant focus right now should be on prices.'