US Fed meeting, June 18 -- Amid the raging war between Israel and Iran, investors are eyeing a key event - the outcome of the US Federal Open Market Committee (FOMC) meeting later on June 18.

Markets have largely priced in a status quo on interest rates from the Fed, even as inflation has cooled and the economy is showing signs of weakness. There is also pressure from President Trump to lower rates. However, a rate cut is unlikely at this juncture due to prevailing uncertainty over how US tariffs will impact the growth-inflation dynamics in the world's largest economy.

The US headline consumer price index (CPI) for May increased at a softer-than-expected pace of 0.1 per cent month-on-month and was 2.4 per cent year-on-year. Core CPI inc...