Warsh Faces Pressure to Hike Rates Amid Rising Inflation Concerns

The Federal Reserve is expected to keep its key interest rate unchanged when it meets on Tuesday and Wednesday, but Fed Chair Kevin Warsh faces increasing pressure to hike rates soon. The Iran war has pushed oil and gas prices higher, which will worsen inflation in the coming months.

Soaring investment in artificial intelligence has also raised the cost of laptops, smartphones, and electricity. Price hikes from tariffs could be in the pipeline after President Donald Trump imposed new duties on dozens of U.S. trading partners.

Lorie Logan, president of the Federal Reserve Bank of Dallas, said that inflation does not appear to be headed sustainably back to 2%, making modestly higher interest rates necessary to balance the outlook.