Stocks, Dollar Rise Ahead Of Fed Meeting, Boeing Eyes Best Day In Nearly 2 Years: What's Driving Markets Wednesday?

Risk sentiment shows signs of recovery by midday trading in New York, as investors anxiously await the Federal Open Market Committee (FOMC) meeting at 2:00 p.m., hoping that Federal Reserve Chair Jerome Powell will offer reassuring remarks on the strength of the economy.

The Federal Reserve is widely expected to keep the fed funds rate unchanged between 4.25% and 4.50% for the second consecutive meeting, likely emphasizing the need for further clarity on inflation trends before considering any easing of monetary policy.

Policymakers will also release fresh economic projections, including estimates for real GDP growth, labor market conditions, inflation, and interest rates, with the latter reflected in the dot plot.

In December, the Fed had penciled in two rate cuts for 2025, a notable shift from the four cuts projected in September. Financial markets currently fully price in three ...