Fed Holds Fire on Interest Rates Amid Frustration Over High Inflation

The Federal Reserve is expected to keep interest rates unchanged at its meeting this week, despite rising frustration over high inflation. Policymakers have been losing patience with inflation, which has exceeded the Fed's 2% target for more than five years.

New Fed Chair Kevin Warsh has stated that he has 'no tolerance' for elevated inflation and has presided over his second policy meeting this week. However, it is unlikely that he will act on his frustration just yet.

Analysts at BNP Paribas Securities believe that a shock rate hike may be possible this week, but more likely policymakers will hold off, reluctant to disrupt financial markets. The Fed is expected to await further economic data before making any decisions.