Fed keeps rates at 3.5%-3.75% but officials split on future hikes as inflation forecasts rise sharply and new chair Kevin Warsh signals policy shift.

The Federal Reserve is expected to hold rates at 3.50%-3.75% at its June meeting, with 96% probability. New chair Kevin Warsh faces his first FOMC decision.

The Federal Reserve held interest rates steady at 3.5%-3.75% in Kevin Warsh's first meeting, with policymakers signaling potential rate hikes to combat surging inflation. Despite…