New Delhi, July 30 -- Fed Chairman Kevin Warsh has vowed to bring inflation to heel, curbing annual price growth to 2%, in line with the Fed's longstanding target. But the Fed made little progress toward that goal Wednesday in the minds of many investors.

The Federal Open Market Committee voted 9-3 to leave interest rates unchanged at its July policy meeting. Moreover, Warsh gave no indication at a post-meeting press conference of what might prompt the central bank to raise rates to contain inflation, which has been well above 2% for the past five years.

"Overall, today's press conference can add to the sneaking suspicion that the Fed will talk tough, but won't hike and the market conviction over a September rate hike may well come unde...