Fed expected to hold rates steady days before US midterms

Federal funds rate target, upper end

4.0 %

In September the Fed raised its key rate for the first time in three years, to a range of 3.75 to 4 per cent.

Inflation hit a three-year high of 3.9 per cent in May, and markets price in at least one more hike before year-end.

Washington

The Fed announces its decision on Wednesday at 2 p.m. ET, days before the US midterm elections on Nov 3.