WASHINGTON, Oct 25 — The US Federal Reserve appears set to hold interest rates steady at its meeting next week, analysts say, despite stubbornly high inflation and with markets pricing in at least one rate hike before year-end.

The central bank’s Federal Open Market Committee (FOMC) will meet over two days, announcing its decision at 2:00 pm local time (18:00 GMT) on Wednesday.

The Fed has missed its long-term two-per cent target for inflation for more than five years, and at its last meeting in September the FOMC voted to raise the key federal funds rate for the first time in three years, lifting the target range to 3.75 per cent to 4.0 per cent.

The Fed’s meeting comes days ahead of key midterm elections in the United States on November 3, with the Democratic Party seeking to wrest control of both houses of Congress from US President Donald Trump’s Republicans.