Fed expected to raise interest rate amid recession fears

The Federal Reserve is set to announce on Wednesday whether it will impose another interest rate hike, the central bank's latest move in a monthslong fight that has eased inflation but risks plunging the U.S. into a recession.

The Fed has put forward a string of borrowing cost increases as it tries to slash price hikes by slowing the economy and choking off demand. The approach, however, risks tipping the U.S. economy into a downturn and putting millions out of work.

At a meeting in December, the Fed raised its short-term borrowing rate a half-percentage point, pulling back from...