Federal Reserve to Raise Interest Rates Despite Banking Turmoil

The Federal Reserve is expected to raise interest rates for the 10th time on Wednesday, despite facing two competing economic trends. Turmoil in the banking sector and political battles over the government's borrowing limit could weaken the economy, while inflation is persisting at a level far above the central bank's 2% target rate. The Fed's decision could provoke divisions among officials, with some preferring to pause rate increases while others want to lift the key rate to at least 5.4%. The Fed's likely rate hike comes as other major central banks are also tightening credit.