G7 Central Banks Under Pressure to Raise Interest Rates Amid Inflation Risks
Central banks from the G7 are facing pressure to raise interest rates as inflation risks continue to mount. The US Federal Reserve is expected to hike rates after a higher-than-expected core inflation reading on Friday, while Bank of Japan officials predict a rate increase at the end of the week.
The US will be most closely watched in the wake of the inflation data, which has stoked investor bets that Fed Chairman Kevin Warsh and his colleagues will raise their benchmark rate. This would be in defiance of President Donald Trump's wishes, who has been advocating for lower rates.
Meanwhile, Bank of England officials don't anticipate a rate increase on Thursday, but the prospect of shifting toward a hike as soon as November can't be ruled out due to simmering price risks.