Fed Leaves Fed Funds Target Unchanged At 2%, Signals Higher Rates Ahead

The Federal Open Market Committee decided to keep its target unchanged at 2% today.  You can read the full text of the statement released by the Fed here.  The Fed emphasized that continued increases in the prices of commodities and other indicators of inflation expectations contributed to uncertainty about the inflation outlook.  More specifically: "Although downside risks to growth remain, they appear to have diminished somewhat, and the upside risks to inflation and inflation expectations have increased."  I wonder if the increased indicators of inflation expectations have anything to do with the Fed keeping interest rates at 2% as just about every other Central Bank in the world is raising rates (most recently India yesterday with its second hike in a month)? Nevertheless, the Fed appears to have ended its quest to bailout the banks and is now poised to raise rates.  Will increases in inflationary signals outweigh the negative economic data to force the Fed's hand?  It's bound to be a very close call.