Fed Expected to Hold Rates Steady Amid Rising Inflation Concerns

The US Federal Reserve is expected to keep interest rates steady at 3.50-3.75 per cent for the fifth consecutive meeting, according to CME's FedWatch monitoring tool.

However, rising inflation fueled by President Donald Trump's war on Iran may prompt some policymakers to support a rate increase.

Average consumer inflation eased to 3.5 per cent year-on-year in June but is expected to rise again due to seesawing oil prices from the ongoing conflict.

Fed Chairman Kevin Warsh has refused to publicly share his views on the economic outlook, part of his proposed reforms to reduce forward guidance offered by the central bank.