Will tough talk be enough? Fed Chair Warsh faces pressure to combat inflation

Federal Reserve Chair Kevin Warsh faces growing pressure to raise rates soon, even as the central bank is expected to keep its key interest rate unchanged when it meets Tuesday and Wednesday. The challenge is building inflation pressures: the Iran war has pushed oil and gas prices higher, artificial intelligence investment is lifting costs for items like laptops and smartphones, and new tariffs on dozens of U.S. trading partners could add more price pressure. While spikes may prove temporary, inflation has been above the Fed’s 2% target for more than five years. Core inflation has held around 3% or higher since 2023.