Fed governor warns of possible interest-rate hikes if inflation comes in hot this week

A Federal Reserve governor warned of potential interest-rate hikes if inflation remains high this week. With the war in Iran pushing inflation to a three-year high and the labor market staying resilient, the Federal Reserve is shifting from an easing bias to a tightening one. These potential hikes could tighten financial conditions, which would impact borrowing costs and economic growth. All eyes are now on price data to determine the next move by the Fed.