The Globe and Mail reports in its Tuesday, July 28, edition that Kevin Warsh faces a crucial decision this week at his second meeting as chair of the Federal Reserve. A New York Times dispatch to The Globe reports that Mr. Warsh has committed to reducing inflation. Now, he must choose whether to increase borrowing costs to support that pledge. This Wednesday's decision represents his first real chance to assert himself, with risks on both sides. Urging his colleagues to raise interest rates could effectively manage public expectations about inflation and address critics of Mr. Warsh's commitment to tackling price pressures. However, potential pitfalls exist depending on how he justifies this move. A rate rise following mild inflation data could create confusion about officials' responses to economic shifts, testing already jittery financial markets amid rising oil prices near $100 (U.S.) a barrel due to the renewed conflict in Iran. Mr. Warsh might also have to contend with criticism from President Donald Trump, who tapped him for the job and has made clear his desire for lower rates. Keeping rates unchanged would leave the Fed's policy options open while giving officials more time to see how the economy is evolving.