- Asian equities fell as investors awaited the U.S. Federal Reserve's interest rate decision.
- South Korea's Kospi declined 0.93%, Japan's Nikkei 225 slipped 0.06%, Australia's ASX 200 down 0.05%.
- Fed's first meeting chaired by Kevin Warsh expected to keep rates unchanged amid inflation concerns.
Asian equities edged lower on Wednesday as investors awaited the U.S. Federal Reserve's interest rate decision, with concerns over persistent inflation tempering sentiment despite signs of progress in talks between the U.S. and Iran.
South Korea's Kospi led declines in the region, falling 0.93%. Japan's Nikkei 225 slipped 0.06%, while Australia's ASX 200 was down 0.05%.
Investors are closely watching the Federal Reserve's policy meeting, which marks the first chaired by Kevin Warsh. Policymakers are widely expected to leave interest rates unchanged, but markets are assessing whether the central bank's language signals a shift in its policy outlook.
Several Federal Open Market Committee members have become increasingly concerned about inflation proving more persistent than previously anticipated. Higher energy prices following the U.S. conflict with Iran have added to those concerns, prompting some officials to outline circumstances under which further rate increases may be warranted.
Some policymakers also want to remove language from the Fed's statement that suggests the next move in rates is likely to be a cut, underscoring the debate within the central bank over the direction of monetary policy.
The Fed decision comes as President Donald Trump continues to push for lower borrowing costs, creating an early test for Warsh as he leads the U.S. central bank through a period of competing pressures.
Meanwhile, developments in the Middle East remained on investors' radar.
Trump said on Tuesday that he would be open to sharing details of a new U.S.-Iran peace agreement with Congress after several lawmakers sought an opportunity to review the deal before it is finalised.
The preliminary agreement between Washington and Tehran would extend the ceasefire between the two countries for 60 days and establish a framework for future negotiations covering Iran's nuclear programme and other issues.
While the prospect of continued diplomacy offered some support to risk sentiment, investors remained focused on whether the ceasefire would hold and how the Fed would balance inflation risks against expectations for future policy easing.
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