New Delhi, Oct. 28 -- The US Federal Reserve faces a critical debate over how to address an inflation problem that shows no immediate sign of going away, while high borrowing costs are putting pressure on the housing market and the labour market presents its own challenges.

When the rate-setting Federal Open Market Committee (FOMC) announces its decision on Wednesday, markets overwhelmingly expect no change in benchmark interest rates following September's quarter-percentage-point increase.

Investors will be looking for clues about future policy moves, particularly from Chairman Kevin Warsh.

Recent inflation data has offered little respite from price pressures that intensified earlier this year. The consumer price index (CPI) showed an...