Federal Reserve policymakers are expected to hold interest rates steady on Wednesday, posing an early test for new chairman Kevin Warsh as rising inflation erodes households’ purchasing power and President Donald Trump continues to press for lower borrowing costs.
In his first meeting leading the US central bank, Warsh is presiding over a Federal Open Market Committee where several participants have grown increasingly worried about stubborn inflation. A jump in energy prices after the outbreak of the US war in Iran only amplified those concerns. Several officials have now outlined scenarios they believe could warrant rate hikes and want to eliminate language in their post-meeting statement suggesting their next move is likely to be a cut.
