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'This Is the Test': All Eyes on US Fed to Tackle High Inflation
Investors now see an 85% chance of a rate increase as core prices rose 0.3% and services inflation posted its biggest monthly gain since early 2026.
- On Wednesday, September 16, the Federal Reserve enters a key rate-setting meeting with markets assigning an 85% probability of an interest rate hike to combat persistently high inflation.
- Following Friday's August consumer inflation data, which remained steady at 3.4 percent, policymakers face mounting pressure as core prices rose 0.3% and services prices climbed 0.5%.
- Fed Chairman Kevin Warsh faces a credibility test as investors weigh whether he will raise rates despite President Donald Trump's threats of trade war escalation if rates increase.
- Raising interest rates acts as a "costly medicine," Claudia Sahm warned, noting it would increase borrowing costs for the US economy and slow investment activity.
- Central banks across the G-7 face similar inflation risks, with decisions from Britain and Japan following the Fed's announcement, potentially recasting global monetary policy for the rest of 2026.
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'This is the test': All eyes on US Fed to tackle high inflation
The world's largest economy has been dealing with years of higher-than-target inflation, and prices have surged in the wake of US President Donald Trump's war on Iran, his signature tariff policies and the ongoing AI boom. The Fed has held rates steady since January, choosing to wait to gauge the effects of energy price shocks and to let the tariffs' effects on prices ripple through the economy. In recent weeks, however, several Fed policymakers…
·Issy-les-Moulineaux, France
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Taipei Times
Taipei TimesAll eyes on US Fed to tackle high inflation
The US Federal Reserve goes into a key rate-setting meeting this week with markets expecting policymakers to pull the trigger on a rate hike to tackle persistently high inflation -- and analysts say central bank...
Coverage Details
Total News Sources11
Leaning Left2Leaning Right3Center3Last UpdatedBias Distribution38% Center, 37% Right
Bias Distribution
- 38% of the sources are Center, 37% of the sources lean Right
38% Center
L 25%
C 38%
R 37%
Factuality
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