US Futures Climb as Fed Interest Rate Hike Looms

US futures rose on Wednesday ahead of the Federal Reserve's decision on interest rates. The central bank is expected to hike rates for the first time in over three years, with economists saying that Fed Chair Kevin Warsh has largely boxed himself into a rate hike after warning about inflation.

Fed Chair Warsh delivered a high-profile speech last month, stating that inflation remains well above the 2% target. US data released last week showed that inflation is still stubbornly high, bolstering expectations for higher rates. These higher interest rates can slow borrowing and cool costs, which could be beneficial in the long run.

However, this move puts Warsh on a collision course with President Donald Trump, who wants the Fed to cut interest rates. Oil prices declined for the first time this week due to Saudi Arabia's crucial oil pipeline closure adding pressure on global oil supply.