Fed set to raise rates as inflation stays hot

The US Federal Reserve is expected to raise interest rates next month, ignoring President Donald Trump's demands for cuts, after October inflation came in hotter than expected for the third straight month. The Fed will likely hike by either 25 or 50 basis points, with officials like Christopher Waller and Lorie Logan signaling multiple increases may be needed. Annual inflation is around 4 percent, driven by tariffs, Middle East war impacts on fuel costs, and rising goods prices. Trump faces limited options to stop the hikes, as midterm losses for Republicans weaken his influence. The moves threaten to worsen a $2 trillion federal deficit and rising debt costs, while households continue to struggle with cost-of-living pressures.