The US Federal Reserve is widely expected to raise interest rates by 25 basis points on Wednesday, as stubborn inflation and oil prices above $100 a barrel strengthen the case for tighter monetary policy and put Chairman Kevin Warsh in a difficult position, Reuters reported.
The Fed is scheduled to announce its policy decision at 2 p.m. EDT (1800 GMT) after a two-day meeting. Financial markets are pricing in a strong probability of a quarter-point increase in the benchmark rate to a 3.75%-4.00% range, with investors also looking for signals that further tightening could follow.
