Anthony Willis, senior economist at Titan Investment, said in a report that U.S. inflation remains well above target while the economy and labor market remain resilient, increasing pressure on Federal Reserve policymakers to tighten policy. According to Odaily, Willis said policymakers may be willing to temporarily ignore the effects of the recent oil price surge until the impact on inflation becomes clearer.

He also said the broader direction is clear and that the Federal Reserve is taking a more hawkish stance under Warsh's leadership. Markets currently price a 38% chance of a rate hike on Wednesday and have fully priced in the possibility of a September increase.