The Federal Reserve is widely expected to raise its short-term benchmark interest rate on Wednesday for the first time in three years, as it continues to address stubbornly high inflation. Analysts and markets anticipate a quarter-point increase, with the current rate around 3.6 percent. PBS reports it will follow the Fed meeting with a briefing by Fed Chair Kevin Warsh.
The expected decision comes as Warsh provides less forward guidance than previous chairs, so the timing of future moves is not fully clear. Most analysts say Warsh’s remarks two weeks earlier at the Fed’s annual conference in Jackson Hole, Wyoming, indicate the inflation goal has not yet been met. The move is also described as potentially putting the Fed at odds with President Donald Trump, who has supported cutting rates.
Context for the outlook includes signs that inflation pressures may persist, with reports pointing to renewed tensions in the Iran conflict that raise oil and gas prices. That effect is cited as one reason inflation could remain above the Fed’s 2 percent target for longer than previously anticipated, despite earlier forecasts of rate cuts earlier in the year.
