Fed confronts key challenge with possible pause
It is expected that the U.S. Federal Reserve Board will decide during its upcoming meeting to keep interest rates within the range of 3.50% to 3.75%, despite increasing inflation pressures associated with the Iran war and some committee members' expectations of resuming rate hikes. Analysts believe that disagreements within the committee may lead some members to oppose the decision to hold rates steady, with the likelihood of rate increases before the end of the year rising due to persistent inflation, which fell to 3.5% last month and is expected to rise again due to fluctuations in oil prices. Central bank officials are concerned about the accumulation of inflation expectations and the erosion of purchasing power among low-income groups, amid the growing influence of hawkish members within the committee.
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