US Federal Reserve is expected to hold interest rates today despite inflation hitting a four-month high of 3.7%

Asian stock markets rose on Wednesday, lifted by AI-related shares in Tokyo and Seoul, as investors also awaited a policy decision from New Zealand's Reserve Bank.

The Federal Reserve is widely expected to leave its benchmark interest rate unchanged at Wednesday's Federal Open Market Committee meeting, despite US inflation climbing to 3.7% in September — a four-month high and nearly double the Fed's 2% target. Wall Street is pricing in less than a 10% chance of a hike, with next week's midterm elections adding further pressure on the central bank to hold fire. The S&P 500 edged 0.2% higher ahead of the announcement, sitting within 1% of its all-time record.

Fed chairman Kevin Warsh has resisted giving markets forward guidance on future rate moves since taking over from Jerome Powell this spring.

Heather Long, chief economist at Navy Federal Credit Union, warned borrowing costs will remain 'really high for the foreseeable future' for American consumers.

Trump publicly demanded the Fed cut rates last month, posting 'LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!' after September's surprise hike.

The IndependentAsian stocks rise after a rally on Wall Street, while oil prices edge higher HuffPostU.S. Stocks Hold Steady As The Countdown Ticks To A Federal Reserve Decision On Interest Rates UPIFederal Reserve expected to pass on interest rate hike, for now ReutersStocks get AI lift, dollar holds steady ahead of Fed decision ReutersFed likely to go into wait-and-see mode on rates APGlobal shares are mixed after US stock rally, and oil prices gain more than 1%APFederal Reserve likely to skip rate hike despite elevated inflation ReutersDollar holds gains ahead of Fed policy signal, RBNZ decision

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