Inflation is still high. Will it be enough for the Fed to raise its benchmark rate?

The Federal Reserve’s 2% target for inflation hasn’t been met in over 5 years.

Federal Reserve Chairman Kevin Warsh testifies before the Senate Banking, Housing and Urban Affairs Committee to deliver the semiannual monetary policy report to congress, on Capitol Hill, Wednesday, July 15, 2026, in Washington. [Photo: Jose Luis Magana/AP Photo]

Federal Reserve policymakers are losing patience with inflation, but they may not be ready to turn their frustration into action — not this week anyway.Meeting in Washington Tuesday and Wednesday, the Fed is expected to keep its benchmark interest rate unchanged. Members of the central bank’s rate-setting committee may not be so reluctant to act when they gather again next Sept. 15-16.Inflation has been stuck above the Fed’s 2% target for more than five years. New Fed Chair Kevin Warsh told Congress earlier this month that he had “no tolerance” for elevated inflation. Warsh is presiding over his second policy meeting this week.Fed watchers Joseph Egelhof and Guneet Dhingra at BNP Paribas Securities say it’s possible Warsh’s central bank will “release the kraken” with a “shock rate hike” this week. More likely, they write, policymakers........

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