Oil prices surge ahead of Fed decision, fueling inflation fears
12:12, 14/09/2026, MondayU: Update: 12:17, 14/09/2026, Monday
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Brent and West Texas Intermediate crude futures climbed more than 2% on Monday as markets brace for the Federal Reserve's policy rate decision this week, with Chairman Kevin Warsh warning that inflation remains too high and additional monetary tightening may be needed to bring price pressures back to target levels.
Brent crude and West Texas Intermediate futures rose more than 2% at the start of the week as traders positioned for the Federal Reserve's upcoming policy decision, according to Anadolu Agency. Brent was trading at $106.8 per barrel and WTI at $102.2 as of 0630GMT on Monday, with both benchmarks extending recent gains amid growing concerns that escalating energy costs could complicate the central bank's inflation fight.
Warsh warns on inflation
The Federal Reserve is scheduled to announce its latest interest rate decision on Wednesday, with markets closely watching for signals on the future path of monetary policy. Last month, Fed Chairman Kevin Warsh said inflation remained too high despite a resilient economy and growing investments in artificial intelligence, stating at the Jackson Hole Economic Policy Symposium that additional policy steps may be required if price pressures fail to subside.
Price pressures mount
US consumer price inflation stood at 3.4% on an annual basis in Friday's data release, while the monthly rate accelerated to 0.4%. Last week, data from the American Automobile Association showed diesel prices reached a record $6.05 per gallon, further intensifying inflationary concerns and adding pressure on the Federal Open Market Committee as it deliberates on Wednesday.