Warsh on the Line: Fed Rate Decision Looms Large Over Global Markets
The US Federal Reserve is set to make a crucial decision on interest rates this week, as markets expect policymakers to raise borrowing costs to combat persistently high inflation.
The Fed's two-day meeting will conclude with a rate announcement at 2.00pm on Wednesday, and analysts are predicting a 25-basis-point hike to tackle inflation that remains above the central bank's target of 2 percent.
The US economy has been grappling with years of higher-than-target inflation, exacerbated by President Donald Trump's tariff policies and the ongoing AI boom. New data showed consumer inflation remaining steady at 3.4 percent in August, fueling market expectations of a rate hike.
Fed chief Kevin Warsh is under pressure to deliver on his commitment to bring down inflation, but faces opposition from Trump who has long demanded lower interest rates to spur economic activity.