Fed Holds Steady on Interest Rates Amid Inflation Fears

Despite growing frustration over inflation, the Federal Reserve is expected to keep interest rates unchanged at its meeting this week. Fed Chair Kevin Warsh has expressed 'no tolerance' for elevated inflation, which has remained above the central bank's 2% target for more than five years.

The decision comes as Australia's big four banks forecast that underlying inflation will stay high in the June quarter, with economists predicting trimmed mean inflation to rise 0.9% and annual core inflation to reach 3.7%, surpassing the Reserve Bank of Australia's 2-3% target band.

Gold prices have been affected by the anticipation of the Fed's decision, with spot gold falling 0.1% to $4,021.87 per ounce on Wednesday.