The dollar was steady on Wednesday, with currency markets generally quiet ahead of the U.S. Federal Reserve meeting, where investors will be looking for any sign of response to the jump in U.S. inflation.

The Fed concludes its policy meeting later in the day and will release new economic projections along with a policy statement at 1400 EDT (1800 GMT).

The central bank is widely expected to acknowledge the first conversations among its policymakers about when and how fast to pare back the massive bond-buying programme launched in 2020, but most investors think the Fed will refrain from any hints of starting tapering its stimulus in the near future.

At 0712 GMT, the dollar was flat on the day against a basket of currencies, at 90.504. On Tuesday, it hit a one-month high of 90.677, despite mixed U.S. economic data. The euro was little changed against the dollar, at $1.212 .

U.S. retail sales dropped more than expected in May but sales in April were revised sharply up and are way above their pre-pandemic level. Separate data showed that wholesale price inflation accelerated to 6.6%. Consumer price data last week showed the sharpest rise in more than a dozen years.

Market participants will be listening for any change in tone from Fed Chair Jerome Powell about whether the inflation is likely to be temporary or longer-lasting.