US Fed Holds Rates Steady Amid Inflation Concerns

The US Federal Reserve (Fed) held interest rates steady on Wednesday, July 29, despite expectations of a quarter-point hike. This decision may raise questions about Fed Chairman Kevin Warsh's commitment to bring inflation back down to the central bank's target 2%.

Warsh has said he has 'no tolerance' for inflation that has been above target for over five years. Inflation remains elevated, and economic activity is expanding at a solid pace, according to the Fed.

The Fed's policy statement noted that job gains have kept pace with the workforce, and the unemployment rate has changed little. Warsh emphasized that decisions by the committee matter and that they will not hesitate to act if necessary.