Markets expect the Federal Reserve to keep interest rates unchanged tonight, and worsening inflation may force future tightening policies.

The market widely expects the Federal Reserve to keep interest rates unchanged tonight. CNBC analysis points out that the Fed faces the challenge of worsening inflation since the last meeting and multiple indicators pointing to weaker data in the future. TD Securities states that if significantly higher inflation data or continued strong labor market performance emerges, the market may increase its expectations for a 50-basis-point rate hike by the Fed at its next meeting. (Source: CNBC) AI Interpretation: The Federal Reserve's decision to maintain interest rates was in line with market consensus, but the reality of worsening inflation shattered any illusions of a policy shift. Current monetary policy is caught in a dilemma; sticky inflation forces the Fed to maintain high interest rates to curb price rebounds. Rising market expectations for further rate hikes directly reflect concerns about a prolonged tightening cycle. This policy stance completely eliminates the possibility of rate cuts in the short term and reinforces expectations of continued tightening of financial conditions.