US Fed likely to keep rates steady as hopes of early cuts fade [Video]

The US Federal Reserve is expected to hold interest rates steady for a sixth straight meeting Wednesday, with a summer start to cuts looking less likely owing to stubborn inflation.

For months, the US central bank has maintained its benchmark lending rate at a 23-year high to cool demand and rein in price increases — with a slowdown in inflation last year fueling optimism that the first cuts were on the horizon.

But inflation has accelerated, and analysts widely believe the rate-setting Federal Open Market Committee (FOMC) will keep its target range at 5.25 percent to 5.50 percent.

As hope dwindles for rate cuts in the first half of the year, the Fed also …