The US Federal Reserve is widely expected to raise interest rates for the first time since 2023, as it battles inflation that has stayed above its 2% target for more than five years. The move comes despite intense pressure from President Donald Trump, who has repeatedly demanded rate cuts and threatened trade consequences against countries running a surplus with the US, putting his handpicked Fed chair, Kevin Warsh, in a difficult position just weeks before crucial midterm elections.

The Fed is expected to lift rates by a quarter of a percentage point, taking the benchmark federal funds rate to a target range of 3.75% to 4%, having held rates steady at its July meeting. Inflation pressures have been compounded by Trump's ongoing conflict with Iran. The decision is due at 2pm ET, followed by a press conference from Warsh at 2.30pm, with the outcome likely to anger Trump, who has previously attacked predecessor Jerome Powell over similar disputes.