Fed Rate Hike Probability at 90% Amid Trump-Washi Policy Clash

The likelihood of the U.S. Federal Reserve raising interest rates by 25 basis points this week has been reflected at approximately 90% in markets. This comes as a potential clash emerges between President Trump's demand for rate cuts and Federal Reserve Chair Kevin Washi's emphasis on controlling inflation, putting their policy differences to the test. The Wall Street Journal reported that rising energy prices, new tariffs taking effect, and increased demand for power and equipment due to AI infrastructure expansion have intensified U.S. price pressures. AP News noted that futures market pricing indicates a 90% probability of the Fed raising rates on Wednesday.