The U.S. Federal Reserve's Federal Open Market Committee (FOMC) voted 9-3 on July 29 to hold benchmark short-term interest rates steady. Despite the pause, Wall Street reacted negatively, with the Dow closing down 2.19% and the 30-year Treasury yield hitting 5.2%.

Markets are concerned that the Fed's current approach may not effectively curb inflation, leading to expectations of earlier and higher rate hikes. Analysts point to the Iran War and rising oil prices as key factors driving inflation. The CME Group FedWatch Tool indicates a 67.9% chance of at least a 25 basis-point rate hike in September.