Increasing oil prices intensify inflationary pressures during Fed week

Oil prices rose at the start of the Fed's policy rate week, intensifying inflationary pressures; both WTI and Brent futures are up more than 2%.

On Wednesday, the US Fed will announce its policy rate decision.

Last month, Fed Chairman Kevin Warsh said inflation remained too high, despite a resilient economy and growing artificial intelligence investments.

Speaking at the Jackson Hole Economic Policy Symposium, Warsh signaled that additional monetary policy steps may be needed if inflation does not fall to the target level.

On Friday, the US inflation rate stood at 3.4%, while the monthly rate increased to 0.4%.

Last week, American Automobile Association data showed that the price of diesel reached $6.05, hitting a record high.

Increasing oil prices during this month raise inflationary concerns and put pressure on the Fed's monetary policy board.

Brent futures are trading at $106.8, up 2.1% as of 0630GMT; WTI is trading at $102.2, up 2.2%.