The U.S. Federal Reserve goes into a key rate-setting meeting this week with markets expecting policymakers to pull the trigger on a rate hike to tackle persistently high inflation — and analysts say central bank chief Kevin Warsh's credibility is on the line.

A run of economic data has bolstered the case for a rate hike, including a rise in core consumer prices.

The US Federal Reserve goes into a key rate-setting meeting this week with markets expecting policymakers to pull the trigger on a rate hike to tackle persistently high inflation…