New Delhi, Oct. 30 -- The US Federal Reserve on Wednesday left its policy rate unchanged after delivering the first increase in more than three years last month. With inflation nearly double its 2% aim, it could be taking a big risk.

Letting price pressures flare could entrench inflation expectations. But chair Kevin Warsh seems to reckon it's better to wait-and-watch until the next review in December. Inflation can be lowered to its target without having to "throw sand in the gears" and slow growth, he said. Imminent mid-term elections may have also held Warsh's hand, although he refuted political influence.

For inflation to cool, oil prices must plummet. The odds of that don't look bright after US President Donald Trump's warning of p...