The Federal Reserve is expected to stand pat on interest rates Wednesday even though inflation has accelerated in the past couple of months as the Iran war has caused spikes in oil and gas prices . The Fed’s latest policy meeting concludes less than a week before the midterm elections , which have focused heavily on concerns about the cost of living and affordability . Consumers have generally soured on an economy weighed down by more expensive gas, groceries , and clothing, among other items. The Fed, led by Chairman Kevin Warsh , wants to return inflation to its 2% target, which it typically does by raising its short-term interest rate. Higher borrowing costs, over time, can cool spending and slow inflation. 9%, in what many investors and economists perceived was a first step toward a renewed effort to bring down inflation. Yet Warsh faces a host of challenges in achieving that goal. President Donald Trump slammed the Fed for raising its key rate last month, though he largely blamed the central bank’s rate-setting committee, rather than Warsh, whom he appointed. And some of the forces driving inflation — specifically the rapid buildout of artificial intelligence infrastructure and higher energy prices — won’t easily be tamed by higher interest rates. At the same time, other parts of the economy are already being hit by higher rates, which were lifted by market forces, even before the Fed hiked last month. 4% earlier this month, though it has since slipped a bit.

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