Pressure Mounts on Fed to Raise Interest Rates -- Market Talk

0519 GMT - The pressure on Federal Reserve policymakers to tighten policy has increased, as U.S. inflation is still significantly above target, and the economy and the labor market remain resilient, Columbia Threadneedle Investments' Anthony Willis says in a note. "However, policymakers may be willing to look through the recent spike in oil prices, until the inflationary implications become clearer." Nevertheless, the broader direction of travel is evident: the Fed is adopting a more hawkish stance under Warsh's leadership, the senior economist says. Markets are currently pricing in a 38% probability that the Fed will raise interest rates on Wednesday, and are fully pricing in a rate hike in September, according to LSEG. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

July 28, 2026 01:19 ET (05:19 GMT)