Fed Chair Warsh Expected to Raise Rates

The Federal Reserve, led by Chair Kevin Warsh, is almost certain to raise interest rates by 0.25 percentage points to 3.75% this week. This follows a consumer price index report showing inflation at 3.4%, above the 2% target. The CME FedWatch futures market prices the chance of a hike at 88.5%. A decision not to raise rates would risk damaging the Fed's credibility.