It's Fed day, and it promises to be a big one.

The Federal Reserve is widely expected to deliver its first interest-rate rise since 2023 this afternoon - a move that could spark tensions between Chairman Kevin Warsh and President Trump.

Markets are largely calm ahead of the 2 p.m. ET policy announcement. The Nasdaq and the S&P 500 opened higher, with the Dow flat. The 10-year Treasury yield has retreated just below 5% and Brent crude futures are down slightly at around $107 a barrel.

The stage has been set for the Fed to raise rates by a widening conflict in the Middle East that has pushed up oil prices and boosted inflation expectations.

The foreign ministers of Iran and China held talks in Beijing Wednesday. Beijing issued a statement saying it wants to avert further escalation in Yemen, where Iran-aligned Houthi rebels have taken effective control of a crucial Red Sea shipping route.