The Fed at its July 28–29 meeting may face pressure to raise rates



The Federal Open Market Committee meeting, which just a few weeks ago was seen as a foregone conclusion, is turning into one of the key events this year. Rising inflation has changed expectations: economists and traders now do not rule out that the regulator may move away from a wait-and-see stance.

Pressure on the Fed is mounting amid inflation data that complicates the case for a pause. Markets are recalibrating the probabilities of a rate hike, which directly affects borrowing costs, equity valuations, and bond market dynamics.
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