New Delhi, July 29 -- Even though the majority of experts believe the US Federal Reserve may hold rates steady on 29 July, the US Federal Open Market Committee (FOMC) may surprise investors as inflation, despite easing in June, remains well-above the Fed's 2% target and oil prices have resumed their upward movement amid revival of tensions in West Asia.

US consumer prices rose by 3.5% year-on-year in June, below expectations, after rising by 4.2% in May.

However, it may be premature to assume that the Fed will be comfortable with the current level of inflation. A hawkish faction has been pushing for higher interest rates, while the new Fed Chair, Kevin Warsh, has repeatedly said that restoring price stability and bringing inflation back...