The US Federal Reserve's policy-setting panel began its meeting this morning.
Wall Street analysts expecting the central bank to announce a rise in short-term rates for the third time this year.
The Federal Open Market Committee (FOMC) is expected to release its decision on interest rates at about 2:15 p.m., its usual time for such announcements.
The panel is widely expected to raise overnight interbank loan rates by a quarter-per centage point, its third such rise this year, and increase the key federal funds rate to 1.75 per cent.
A survey of 22 Wall Street bond dealers by Reuters found them unanimous in expecting a small rate hike as worries that the economy's "soft patch" seen in the summer have eased in recent weeks.
But where the Fed will go after Tuesday's meeting is subject to more debate. Analysts will be closely watching the FOMC's language in its brief post-meeting statement for clues to future policy.
While inflation has remained low in recent months, economic activity has been fitful.
But the panel received a dose of good news on that front today, when the Commerce Department said housing starts in August rose 0.6 per cent.
The next FOMC meeting is slated for November 10th.