New Delhi, Sept. 16 -- The Federal Reserve is widely expected to raise interest rates Wednesday for the first time in more than three years, but some economists say a hike would be a mistake.

The Fed is expected to lift its benchmark rate by a quarter of a percentage point to 3.75%-4%. Fed-funds futures traders put the odds of a hike at 91%, up from just 30% ahead of the central bank's July meeting, according to the CME FedWatch tool.

Yet, the debate around the correct monetary policy path is far more nuanced than the probabilities suggest. While many Fed watchers see valid reasons for officials to raise interest rates this week, others say it would be the wrong move, given the current inflation backdrop.

"Hiking is the wrong choice," ...