Fed Holds Rates Steady as Hawks Circle with Rate Hike Calls

The US Federal Reserve is expected to hold interest rates steady on Wednesday, but some policymakers are calling for a rate hike to combat surging inflation.

Inflation has been fueled by President Donald Trump's war on Iran, which has sent global energy and fertilizer prices skyrocketing.

According to CME's FedWatch monitoring tool, most investors expect the Fed to hold rates at 3.50-3.75 percent for the fifth straight meeting.

However, some analysts believe that policymakers are running out of patience with inflation, which has remained above the Fed's two-percent target for more than five years.

Gregory Daco, chief economist at EY-Parthenon, said that Warsh's refusal to publicly share his views on the economic outlook is unusual and has contributed to the uncertainty around the outcome of the meeting.