The Fed is widely expected to leave its benchmark interest rate unchanged at 4.50% later Wednesday, its second consecutive meeting of keeping interest rates unchanged. 

Bets on a hold come amid increasing uncertainty over the U.S. economy, with investors and policymakers waiting to gauge the impact of President Donald Trump’s policies.

The Fed is also set to release its updated summary of economic projections, which could provide insight into just how much further the central bank plans to cut interest rates this year. 

The central bank had kept rates steady in January after reducing them by 1% through 2024. While this was driven chiefly by signs of cooling inflation, price pressures were seen turning sticky through late-2024. 

The Fed has cited softer inflation as the biggest motivator for cutting rates further. But policymakers have expressed concerns that Trump’s tariffs will underpin price pressures in the medium-to-long term.