Alex Brandon / AP

The Federal Reserve's interest-rate setting committee meets this week, and markets are convinced that the Fed will raise rates by 0.25% when the meeting adjourns on Wednesday.

Inflation's revenge: Wall Street Cassandras have been warning about impending inflation for years, but these critics can now point to data showing great demand for labor, like a recent survey from the National Federation of Independent Businesses, which shows that a higher share of jobs are going unfilled today than at any point since 2001.

Why it matters: The last thing the Fed wants to do is put the brakes on an economy that is finally starting to bestow broad wage gains to workers. At the same time, the Fed's model of the economy says that inflation rises as demand for labor increases. And if inflation gets out of control, the Fed would likely be forced to raise rates aggressively enough to risk triggering a recession.

Go deeper

Updated 1 hour ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Politics: McConnell urges White House not to strike stimulus deal before election — Republican senators defend Fauci as Trump escalates attacks.
  2. Health: The next wave is gaining steam.
  3. Education: Schools haven't become hotspots — University of Michigan students ordered to shelter-in-place.
Updated 2 hours ago - Politics & Policy

Biden has huge cash advantage over Trump as Election Day nears

Democratic presidential nominee Joe Biden in Wilmington, Delaware, on Monday. Photo: Drew Angerer/Getty Images

Democratic presidential nominee Joe Biden had $177.3 million in the bank at the end of September, per the latest Federal Election Commission filings.

Why it matters: President Trump's re-election campaign reported having $63.1 million in the bank at the end of last month, as campaigning enters the final stretch ahead of Election Day on Nov. 3.

Court allows North Carolina mail-in ballots deadline extension

An absentee ballot election worker stuffs ballot applications at the Mecklenburg County Board of Elections office in Charlotte, North Carolina, in September. Photo: Logan Cyrus/AFP via Getty Images

North Carolina can accept absentee ballots that are postmarked Nov. 3, Election Day, until Nov. 12, a federal appeals court decided Tuesday in a 12-3 majority ruling.

Why it matters: The 4th Circuit Court of Appeals' ruling against state and national Republican leaders settles a lawsuit brought by a group representing retirees, and it could see scores of additional votes counted in the key battleground state.