Fed Holds Rates Steady Amid Inflation Concerns

The U.S. Federal Reserve is set to hold its second meeting under new chairman Kevin Warsh, and markets expect policymakers to keep interest rates steady at 3.5-3.75 percent for the fifth straight meeting.

This decision comes as inflation remains a concern, with consumer prices easing to 3.5 percent year-on-year last month but still far higher than the Fed's long-term target of 2 percent.

The current tensions in the Middle East have exacerbated energy price volatility, with the benchmark oil futures contract breaching $100 per barrel for the first time since late May.

Some analysts, such as Gregory Daco, chief economist at EY-Parthenon, believe that while the Fed has a 'resolute commitment' to delivering price stability, it is not enough to address inflationary pressures.