US central bank last month raised rates for first time since 2023, in move that infuriated Donald Trump

The US Federal Reserve is expected to leave interest rates unchanged on Wednesday during its last rate-setting meeting before the midterm elections, keeping rates at one of the highest pre-election levels seen in over 20 years.

Last month, Fed officials raised rates for the first time since 2023, citing rising inflation. Inflation has hovered for years above the Fed’s target rate of 2%, and for most of this year, the annualized inflation rate has remained above 3%.

The move infuriated Donald Trump, who said that “interest rates in the United States should be 1% or less”.

Though inflation rose higher in September, going from 3.4% in August to 3.7%, a pause would signal the central bank is taking a wait-and-see approach ahead of the midterms next week.

Interest rates determine the cost of interest for loans, including for credit cards, mortgage and some savings accounts. During times of high inflation, raising rates can slow price increases.