A liver-produced hormone, hepcidin, appears to be the key player in iron metabolism. The overexpression of hepcidin is the underlying cause of anemia of inflammation. The identification of compounds inhibiting hepcidin expression could ameliorate anemia associated with inflammation. In the current study, we have demonstrated for the first time that AG490 significantly abolishes hepcidin expression in mice. Our work represents a novel approach to suppress hepcidin expression for treatment of anemia of inflammation and anemias occurring under other conditions.