The Federal Reserve is expected to keep its key interest rate unchanged this week, but Chair Kevin Warsh is under increasing pressure to hike rates soon to combat persistent inflation. Several Fed officials, including Dallas Fed President Lorie Logan and Governing Board member Christopher Waller, have indicated that rate hikes may be necessary, as core inflation has remained at or above 3% since 2023, well above the Fed's 2% target. Warsh's recent "tough talk" on inflation has already contributed to higher borrowing costs, with the 10-year Treasury yield briefly topping 4.7% last week, its highest in 18 months.