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 ¡ª 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 Trump administration¡¯s announcements of new tariffs, and Fed watchers see the possibility of dissents at the July 28-29 meeting 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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