Fed set to debate faster tightening as it tries to catch up to soaring inflation

The Federal Reserve is this week set to discuss whether to increase the pace of its monetary tightening in the face of what looks to be worsening inflation.

The Federal Open Market Committee convenes on Tuesday for a two-day gathering just days after two economic reports suggested that price pressures have become more relentless than expected.

Before the data on Friday — which showed prices jumping another 1 per cent in May from just…