Fed set to hold rates as Warsh faces inflation test in week 3

Just weeks into the job, Federal Reserve Chair Kevin Warsh is heading into a closely watched policy meeting with markets questioning how hard he will push against renewed inflation. The Fed is widely expected to keep its benchmark rate unchanged at 3.5% to 3.75% this week, while officials assess how an energy-price shock tied to the Iran war feeds into the US economy. Investors have been selling Treasuries and increasing bets on a rate increase by December, even as President Donald Trump has pressed for lower rates. Warsh’s first post-meeting press conference is expected to shape views on whether he will defend the Fed’s independence and revive a tougher inflation stance.