Fed Holds Fire on Interest Rates Amid Soaring Inflation

The US Federal Reserve is set to hold interest rates steady on Wednesday, despite rising inflation fueled by President Donald Trump's war on Iran.

According to CME's FedWatch monitoring tool, most investors expect the Fed to maintain its current rate of 3.50-3.75 percent for the fifth straight meeting.

However, some policymakers are growing increasingly concerned about inflation, which has remained above the Fed's target of two percent for over five years.

Fed Governor Christopher Waller warned that 'the sternly staring at inflation until it melts before our withering gaze is not an option.'