Fed Stays Put on Interest Rates Amid Soaring Inflation and Oil Prices

Wall Street stocks plummeted on July 30 after the Federal Reserve kept interest rates unchanged despite high inflation. The move caught investors off guard, as many had expected a rate hike to combat rising prices. Inflation stood at 3.5% in June on an annual basis.

The market's initial reaction was positive, but it shifted course during Fed Chair Kevin Warsh's press conference. He pledged to achieve price stability and return inflation to the central bank's 2% target while defending his decision not to hike interest rates.

Oil prices surged after President Donald Trump vowed to hit back hard at Iran following its attack on US bases in Jordan. International benchmark Brent oil futures jumped nearly 8% to $90.74 a barrel.