Fed Holds Rates Steady Amid Ongoing Inflation Concerns

The U.S. Federal Reserve is set to convene its second policy meeting under Chair Kevin Warsh, with markets expecting interest rates to remain unchanged as officials weigh persistent inflation risks.

Persistent inflation risks include potential pressures from President Donald Trump's renewed conflict with Iran, which has sent energy prices soaring once more, with the benchmark oil futures contract breaching $100 per barrel for the first time since late May.

The Fed's open market committee (FOMC) will announce its decision on Wednesday at 2 p.m. (6 p.m. GMT), followed by a news conference by Warsh.

Most investors expect the Fed to hold rates steady at 3.50%-3.75% range for the fifth straight meeting, according to CME's FedWatch monitoring tool.