Fed begins policy meeting amid Middle East tensions and slowing US economy

Federal Reserve policymakers will begin a two-day meeting on Tuesday with escalating tensions in the Middle East risking a new commodity price shock and fresh US data expected to show a drop in retail sales and sluggish factory output in May.

The US central bank is widely anticipated to leave its benchmark overnight interest rate in the 4.25 per cent-4.50 per cent range, where it has been since December, and repeat that it can’t give much guidance until it is clearer whether President...