The Federal Reserve is expected to raise its key interest rate Wednesday, putting Fed chairman Kevin Warsh at odds with President Donald Trump, who selected him to lower borrowing costs. Inflation remains above the Fed’s 2% target, while the war in the Middle East has lifted energy prices and threatens to make price pressures more persistent. Wall Street expects two rate increases by year-end, one this month and another in December, although investors and economists disagree over whether that will be enough to cool inflation driven partly by artificial-intelligence investment. Higher borrowing costs are arriving as the economy shows signs of strain, including weaker consumer spending, low consumer sentiment, rising loan delinquencies and prolonged unemployment. The 10-year US Treasury yield has already risen above 5%, increasing borrowing costs before the Fed acts. Labor-market and growth data remain relatively resilient, but economists warn that additional increases could weaken demand and raise recession risks if inflation does not ease.