'This is the test': All eyes turn to Fed as rate hike probable - Daily Sabah

The U.S. central bank heads into a key rate-setting meeting this week with markets expecting policymakers to finally opt for a rate hike amid persistently elevated inflation, as analysts say chief Kevin Warsh's credibility is on the line. The world's largest economy has been dealing with years of higher-than-target inflation, and prices have surged in the wake of U.S. President Donald Trump's war on Iran, his signature tariff policies and the ongoing artificial intelligence boom. The U.S. Federal Reserve (Fed) has held rates steady since January, choosing to wait to gauge the effects of energy price shocks and to let the tariffs' effects on prices ripple through the economy.