US Federal Reserve opens policy meeting, rate hike likely amid soaring inflation

The Federal Reserve building is pictured in Washington, D.C., U.S., August 22, 2018. Credit: Reuters File Photo

The US central bank opened its two-day policy meeting on Tuesday, preparing for another salvo in the war on rising inflation in the form of a big interest rate increase.

The policy-setting Federal Open Market Committee is expected to hike the benchmark borrowing rate on Wednesday by another three-quarters of a percentage point.

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It would be the fourth rate hike this year, in the effort to stamp out inflation, after annual consumer prices soared 9.1 per cent in June.