Fed is expected to hold US interest rates steady before the midterms after last month's hike infuriated Trump

The Federal Reserve is widely anticipated to keep US interest rates on hold at Wednesday's meeting, leaving them near levels not seen this close to an election in more than two decades. Inflation rose to 3.7% in September, up from 3.4% in August, yet Fed governors have indicated there is scope for a pause. The decision falls just days before next week's midterm elections.

Trump has demanded rates of '1% or less', after last month's hike — the first since 2023 — drew his fury.

Fed governor Christopher Waller said hikes 'do not need to come at consecutive meetings' but should arrive 'in an acceptable period of time'.

Most Fed economists still predict one more rate rise before the year is out, even if Wednesday brings a hold.