Fed Holds Rates Steady, But Hike Odds Rise Amid Soaring Inflation

The Federal Reserve decided to hold its federal funds rate steady at 3.5%-3.75% after its July 28-29 meeting, marking the fifth consecutive meeting without a change.

This decision comes as inflation remains high at 4.1%, with oil prices increasing and contributing to price pressures.

Fed Chair Kevin Warsh has been tightening the rhetoric on price stability, and market pricing now reflects an 80% probability of a rate hike by September 2026.

The Fed's decision is seen as buying time for the economy, but if inflation doesn't ease, the clock is ticking towards a potential rate increase.