🔻The U.S. Federal Reserve will decide on the interest rate in response to inflation caused by war with Iran

🔻The U.S. Federal Reserve is set to meet this week to decide on interest rates, as inflation remains above the institution’s target and markets expect a possible increase in rates.

The French news agency reported that prices in the United States have risen as a result of Donald Trump’s war with Iran, his administration’s tariff policies, and an artificial intelligence boom.

The latest figures show that the consumer inflation rate in August was 3.4%; a figure that did not change compared to the previous month, but still remains above the Federal Reserve’s two percent target.

Market estimates indicate that the likelihood of a 0.25 percentage point increase in the interest rate at the Federal Reserve meeting on Wednesday has risen to more than 85%.

The U.S. Federal Reserve has kept the interest rate unchanged since January and is waiting for the impact of higher energy prices and tariffs to become clearer for the U.S. economy.

Hashtags: ["BBC Persian"]