London, July 25 (TIWN) The Federal Reserve is widely expected to raise interest rates by 0.75 percentage points at its July policy meeting, Financial Times reported.

The report also showed a sharp rise in so-called core inflation - which strips out the volatile food and energy sectors - led by higher rent and shelter costs.

That inflation data had initially pushed traders in the futures market to price in the possibility of a full percentage-point increase, but investors have since scaled back their expectations of those levels. 

Analysts and economists say there is little chance the Fed will deviate from the expected 0.75 percentage point increase, Financial Times reported. But markets could be surprised by any clues from chair Jay Powell as to the bank's plans for its September meeting.