Feds Rate Hike Looms Amid Inflation Concerns and Market Volatility

The FOMC meeting today has markets on edge as investors wait for clarity on the Fed's inflation plan. The 10-year Treasury yield is at or above 5%, prompting market watchers to seek stronger signals from Fed Chair Kevin Warsh in his opening statement.

CNBC's Fed survey shows that 76% of respondents expect a rate hike this month, with 55% anticipating more than one hike this year. This brings total hike expectations for the year to 86%, more than double last month's reading.

Analyst Milton Berg argues that the Fed should hold rates unchanged despite rising Treasury yields and higher crude oil prices. He claims an oil-price shock doesn't necessarily signal accelerating monetary inflation, as it reduces consumers' real disposable income and corporate purchasing power, creating a disinflationary effect elsewhere in the economy.