Inflation fight puts Kevin Warsh on the line as US Fed decision looms over global markets
WASHINGTON, Sept 14 — The US Federal Reserve goes into a key rate-setting meeting this week with markets expecting...
The US Federal Reserve convened a crucial meeting this week to deliberate on raising interest rates in a bid to curb persistent inflation, a situation that has plagued the world's largest economy for years. The meeting, which is expected to see policymakers adopt a hawkish stance, has put central bank chief Kevin Warsh, who was appointed by President Donald Trump, in an uncertain position.
Warsh's credibility is on the line, as he faces a crucial test of his independence and commitment to the Fed's mandate, or risk alienating the White House. While the Fed has maintained steady rates since January, recent data showed consumer inflation remaining at 3.4 per cent in August, well above the Fed's two per cent target. Analysts have surmised that the Fed will raise interest rates by 25 basis points, with the probability exceeding 85 per cent.
The move is expected to increase borrowing costs and act as a brake on investment and consumption activity, presenting a trade-off between economic growth and inflation.
Written by urgent.news from Malay Mail's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
