The Federal Reserve is set to maintain its target range of 5.25%-5.50% for short-term interest rates without any adjustments during a two-day meeting.

However, the participants will discuss the future prospects of the US and potential policy measures.

Recent data shows robust job growth and economic performance, but an anticipated increase in long-term borrowing costs is expected to impede these factors.

The Fed’s post-meeting statement and news conference led by Federal Reserve Chair Jerome Powell may indicate further policy tightening as policymakers assess the need for additional measures to bring inflation back to its target level.

Powell has also reiterated the Fed’s intention to exercise caution and use the term “patience” to characterize its approach towards policy modifications.

The Federal Reserve has used the increase in longer-term borrowing costs and tightening financial conditions as justifications for abstaining from additional short-term interest rate hikes.