Fed Keeps Rates Unchanged Amid Frustration Over High Inflation

The Federal Reserve is expected to keep interest rates unchanged at its upcoming meeting on July 15-16, despite growing frustration among policymakers about high inflation. Inflation has been above the Fed's 2% target for over five years, and new Fed Chair Kevin Warsh has stated that he has 'no tolerance' for elevated inflation.

Warsh is presiding over his second policy meeting this week, and while some analysts predict a surprise rate hike - known as a 'shock rate hike' - the majority of Wall Street traders believe rates will remain unchanged. A total of 29% of traders predict a rate increase this week, but 76% foresee a hike in September.

The uncertainty surrounding the Iran war and its impact on oil prices is adding to the complexity of the Fed's decision-making process. The price of oil briefly surged past $100 a barrel last week due to intensifying fighting, but has since settled down on hopes for reduced tensions between the US and Iran.