World Economy

Fed Chief Warsh Faces Rate Hike Scrutiny as Inflation Pressures Mount

Federal Reserve Chair Kevin Warsh will address global central bankers in Bangkok amid intensifying debate over interest rate policy. Market participants are closely watching for signals on whether the Fed will raise rates again in October, as inflation remains hotter than expected. New York Federal Reserve President John Williams suggested one more rate increase is likely in 2026, with no additional moves anticipated in 2027 as price pressures moderate. The divergence in policy outlooks reflects broader uncertainty across central banks globally. The Bank of England faces divisions among officials on inflation risks, while Malaysia's central bank indicated readiness to adjust rates if energy-driven price pressures escalate. Bond markets are repricing expectations amid the conflicting signals from policymakers navigating persistent inflation challenges.