Fed Set to Hike Rates as Inflation and Energy Costs Soar

The US Federal Reserve is meeting to address high inflation and rising energy costs. The benchmark 10-year US Treasury note yield has hit 5.03%, a level last seen in 2007, as investors price in a likely hike in interest rates.

Market expectations for a 25-basis-point rate increase have risen sharply after official data showed US annual inflation remaining far above the Fed's target.

The surge in energy costs has put pressure on central banks to raise borrowing costs. Brent crude futures have pushed towards $110 a barrel, while average diesel prices in the United States have struck a record high of just under $6.27 a gallon.