"US Fed Faces Tough Decision on Interest Rates Amid Inflation and Banking Crisis"

The US Federal Reserve is expected to raise interest rates by a quarter-point next week, bringing its benchmark rate to a 4.75%-5% range, as part of its inflation-fighting campaign. The move follows the European Central Bank's decision to stick with its own aggressive rate hike, as concern over high inflation outstripped fears of a global banking crisis. Despite recent turmoil in the banking sector, traders of US rate futures have firmed up bets on a Fed rate hike, with an unexpected drop in US jobless claims and stronger-than-expected housing data boosting trader bets on a Fed rate hike.