Fed Holds Line as Hawks Circle Inflation

The US Federal Reserve is expected to hold interest rates steady at its meeting on Wednesday, despite rising inflation concerns fueled by President Donald Trump's war on Iran.

Analysts predict that most investors will expect the Fed to maintain its current rate of 3.50 to 3.75 percent for the fifth consecutive meeting, according to CME's FedWatch monitoring tool.

However, some policymakers are calling for a rate hike to combat high prices, which have surged in recent months due to the Iran war and previous economic shocks.

Consumer inflation eased to 3.5 percent year-on-year last month, but is expected to rise again on the back of seesawing oil prices from Trump's war on Iran.