Washington (AFP) - The US Federal Reserve began a two-day policy meeting on Tuesday, with markets overwhelmingly expecting the third rate hike of the year as inflation mounts and the economy grows.

Washington (AFP) - The US Federal Reserve is due to begin a two-day policy meeting later Tuesday, and markets overwhelmingly expected the third rate hike of the year as inflation mounts and the economy grows.

The Federal Reserve will raise interest rates this week and continue its quarterly drumbeat of 25-basis-point increases straight through to June 2019, according to economists surveyed by Bloomberg.

At its September meeting, the Fed increased interest rates by 25 basis points. Since it was well telegraphed beforehand, markets took it in their stride. Continued monetary tightening is expected in December and into 2019, as the Fed looks to steer an economy that is hitting on most cylinders.

This morning, it looks like trading may be on the quiet side as investors wait for a Federal Reserve interest rate decision. A rate hike is expected.

NEW YORK (Reuters) - The dollar gained on Wednesday in choppy trading after the Federal Reserve raised U.S. interest rates as expected for the eighth time, flagged more rate hikes and signalled the end of the "accommodative" policy era.