The Fed's Tightrope: Walking the Line Between Inflation and Growth The Federal Reserve's two day meeting this week will be a crucial test of its ability to balance high inflation with economic growth.
A potential rate hike would make borrowing more expensive, slowing down the economy, but it could also spark criticism from President Donald Trump, who wants lower interest rates to boost the economy.
Inflation has been a persistent problem for the Fed this year, remaining above 3% despite its target rate of 2%. The root cause lies in the ongoing US Iran conflict and its impact on global oil supplies.