Federal Reserve officials will head into their policy meeting this week confronting a resurgence in price pressures that could make their decision on whether to hold or hike interest rates a close call — and a contentious one.
Renewed tensions in the Middle East have sent oil prices soaring again, overshadowing a tamer-than-expected reading on June consumer prices that seemed to offer officials breathing room to keep rates stable. Add to that a demand boom fueled by artificial intelligence and the announcement of new tariffs by Washington, and Fed watchers see the possibility of dissents at the two-day meeting starting Tuesday if officials again leave policy unchanged.
Investors in recent days have also boosted their bets the central bank could hike at this week’s meeting, putting the odds close to 40% at one point last week.
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