US Fed expected to hold rates steady as inflation hawks circle
U.S. Fed expected to hold rates steady as inflation hawks circle The U.S. Federal Reserve is expected to hold interest rates steady on July 29, but with surging inflation fuelled by President Donald Trump's war on Iran, analysts say some policymakers will dissent in favor of a rate hike.
After two days of closed-door sessions, the Fed's open market committee (FOMC) will announce its decision at 2:00 pm (1800 GMT), followed by a press conference by Chairman Kevin Warsh.
Most investors expect the Fed to hold rates at 3.50-3.75 percent for the fifth straight meeting, according to CME's FedWatch monitoring tool — but bets on a rate-hike have been rising.
Consumer inflation eased to 3.5 percent year-on-year last month, but is expected to rise again on the back of seesawing oil prices from Trump's war on Iran, which saw renewed fighting in recent weeks.
