Markets on edge as US Fed meets to tackle high inflation
LONDON — Oil prices jumped, U.S. bond yields rallied and equities retreated Tuesday as the Federal Reserve looked set to raise interest rates, with high inflation and concerns about artificial intelligence (AI) dominating market sentiment. Brent crude futures again pushed towards $110 a barrel, while average diesel prices in the United States struck a record high of just under $6.27 a gallon, heaping pressure on President Donald Trump ahead of midterm congressional elections. "There's no let-up in the volatility rippling through financial markets, with energy prices staying painfully elevated and worries swirling about the knock-on effect for inflation and interest rates," said Susannah Streeter, chief investment strategist at Wealth Club. The yield on the 10-year U.S. Treasury note hit 5.03 percent, a level last seen in 2007 before the global financial crisis, as investors price in a likely hike in U.S. interest rates. The U.S. Federal Reserve began a rate-setting meeting Tuesday with markets expecting policymakers to pull the trigger on a hike to tackle persistently high consumer pri
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