Fed Poised to Hike Rates Amid Inflation and Political Pressure

The Federal Reserve is widely expected to raise rates by 25 basis points Wednesday, defying President Trump's calls for cuts and signaling a hawkish stance on persistent inflation. New market data indicates traders have significantly increased their odds of a hike to 90% following an uptick in core inflation, while economic experts warn that geopolitical tensions and AI-driven costs may keep prices elevated well into the midterm election cycle.
GN markets/policy (en-US) reports that futures markets now price in a 90% probability of a hike, a sharp increase in odds driven by recent data showing core inflation picked up in August. The report also notes that surging investment in AI data centers is contributing to higher longer-term interest rates, while MIT economist Kristin Forbes warns that consumers and companies have become more sensitive to price changes, increasing the risk of persistent inflation.
Source: La NaciónThe Federal Reserve is set to raise its benchmark rate by 25 basis points, a move that defies President Trump's calls for cuts and signals a hawkish stance on persistent inflation.
Source: Newsday






