Fed Holds Fire on Rates, But Inflation Hawkishness Grows

The Federal Reserve is expected to keep interest rates unchanged for now despite rising inflation, but some policymakers may be losing patience and are prepared to take action soon.

Inflation has been above the Fed's 2% target for more than five years, and new Fed Chair Kevin Warsh told Congress he had 'no tolerance' for elevated inflation. However, a rate hike this week is unlikely, as only 29% of Wall Street traders predict a rate increase.

Despite the uncertainty, some experts believe that the Fed will raise rates in September, with 76% of traders foreseeing a rate hike at the next meeting. This would be a significant move, as it would signal a shift in the Fed's policy stance and an attempt to combat inflation.