The U.S. Federal Reserve (Fed) is set to convene its second policy meeting under Chair Kevin Warsh starting Tuesday, with markets expecting interest rates to remain unchanged as officials weigh persistent inflation risks, including potential pressures from President Donald Trump's renewed conflict with Iran.
Warsh was chosen to lead the U.S. central bank by Trump, who has made his demand for lower interest rates clear as he has exerted unprecedented pressure on the independent monetary policymaking body.
After two days of closed-door sessions, the Fed's open market committee (FOMC) will announce its decision on Wednesday at 2 p.m. (6 p.m. GMT), followed by a news conference by Warsh.
Most investors expect the Fed to hold rates steady at 3.50%-3.75% range for the fifth straight meeting, according to CME's FedWatch monitoring tool.
U.S. consumer inflation eased to 3.5% on an annual basis last month, but remains far higher than the Fed's long-term 2% target, which it has not achieved for more than five years.
