* German Bund yields close to seven-week lows
* U.S. Treasury yields near seven-month trough
* Fed widely expected to raise rates
* But weak growth, inflation expected to feed caution
* Euro zone periphery govt bond yields http://tmsnrt.rs/2ii2Bqr (Updates prices, adds move in peripheral yields)
LONDON, June 14 (Reuters) - Europe's benchmark bond yield held near seven-week lows as analysts said weak growth and inflation may encourage the U.S. central bank to adopt a cautious tone after a widely expected rate hike at its meeting on Wednesday.
Germany's 10-year yield and most other euro zone equivalents were flat on the day, as were U.S. Treasury yields, which have not strayed far from seven-month lows hit in early June.
Markets have fully priced the prospect of the Fed raising its benchmark rate to a target range of 1.00 to 1.25 percent, but investors are waiting for any signals on the future path of rates or details on plans to shrink its massive balance sheet.
Following a lacklustre first quarter for economic growth and a retreat in headline inflation to 1.5 percent from 1.8 percent earlier in 2017, there is doubt over whether policymakers can stick to their anticipated pace of tightening of three interest rate rises this year and next.
There are also growing doubts on the size and scope of fiscal stimulus the Trump administration may inject into the U.S. economy with campaign promises on tax reform, financial regulation rollbacks and infrastructure spending either still on the drawing board or facing hurdles in Congress.
"There is a very large probability of the U.S....ratcheting up the Fed funds target range," DZ Bank's Hendrik Lodde said.
"It should therefore be more intriguing to see...whether it is still planning on implementing one further tightening step in the present year... Doubts on this score have surfaced of late."
Few economists polled by Reuters expect major changes in the Fed's quarterly projections for growth, unemployment and inflation which it will also release on Wednesday.
Investors will also be looking for a clearer steer on the timing and details of its previously announced plan to reduce this year its $4.2 trillion portfolio of Treasury debt and mortgage-backed securities, most of which were purchased in the wake of the financial crisis to help bolster the economy.
German 10-year yields were flat at 0.26 percent on Wednesday, just off a seven-week low 0.244 percent hit in recent sessions.
U.S. equivalents were unchanged at 2.20 percent, having struck 2.13 percent - the lowest level since November - earlier this month.
The gap between the two benchmarks edged away from a one-month wide point of 197 basis points hit in the wake of a European Central Bank meeting last week in which policymakers pledged to maintain ultra-easy policy as inflation remained weak.
The ECB's stance has helped boost sentiment towards southern European bond markets, with Italian and Portuguese bond yields extending recent falls to hit new multi-month lows at 1.94 percent and 2.87 percent respectively.
For Reuters Live Markets blog on European and UK stock markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.bi z / c m s / ? p a g e I d = l i v e m a r k e t s
(Editing by Hugh Lawson/Keith Weir)