The US Federal Reserve is likely to raise rates today, a move that many economists say is necessary to corral inflation, but which will put the central bank’s chair in conflict with the White House. The expected quarter-percentage-point hike is one of at least four that traders are betting on over the next year, with ING researchers arguing a 50-basis-point increase could actually be a better move today were it not for the inevitable political fallout.
US President Donald Trump has persistently argued — as recently as Sunday — that borrowing costs should fall rather than rise, despite analysts warning that energy price increases stemming from the Iran war threaten to push inflation, already above the Fed’s target, up further.