Markets are pointing to the Fed raising interest rates by 25 basis points on Wednesday, forced by high inflation.

The United States Federal Reserve has commenced a two-day policy meeting to determine interest rate adjustments. Market consensus anticipates a 25-basis-point increase, which would mark the first rate hike since July 2023. This potential action is driven by persistent inflationary pressures within the U.S. economy.

Beyond domestic inflation data, the decision-making process is influenced by broader economic factors, including a recent escalation in global oil prices. The outcome of the meeting is expected to be announced this Wednesday, serving as a critical indicator of the central bank's strategy to stabilize the national economy.