Fed Stays Course on Rates Amid Inflation Fears

The US Federal Reserve is set to keep interest rates steady at its upcoming meeting on Tuesday, despite concerns over inflation. The decision, led by Chairman Kevin Warsh, comes as oil prices soar above $100 a barrel due to escalating hostilities in the Middle East.

The Fed's focus remains on price stability, particularly with the labour market having stabilised. However, some policymakers and investors have expressed frustration over the continued high inflation rates, which may indicate a rate hike is on the horizon.

Economists note that Warsh has been largely quiet about his approach, preferring reduced forward guidance. This lack of clarity has fuelled market uncertainty, with some predicting dissent among committee members and further hikes later in the year as hawkish sentiment within the Fed strengthens.