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 While the central bank is expected to leave interest rates
unchanged, investors will keep a close eye on its commentary for
clues on the path of future hikes.
Investors have welcomed the easing of the intense volatility that
swept through financial markets in the first two months of the year,
but remain cautious as calmer conditions could prompt the Fed to
resume its policy tightening soon.
Economists polled by Reuters are looking at two possible rate hikes
in 2016, but financial markets are pricing in only one hike of 25
basis points.
Global markets were mixed ahead of the Fed statement, which is
expected at 2 p.m. ET. Fed Chair Janet Yellen is scheduled to hold a
press conference at 2:30 p.m.
Crude prices rose about 2 percent after OPEC and non-OPEC producers
agreed to meet next month to discuss freezing output, fueling hopes
of strong measures to tackle a global glut.
U.S. stocks closed lower on a quiet Tuesday, dragged down by a
decline in healthcare and energy shares.
Data scheduled on Wednesday will also give investors a reading on
the state of the U.S. economy.
A report by the Labor Department is expected to show that core
consumer price index (CPI) likely rose 0.2 percent in February. An
improvement in core CPI, which excludes energy and food prices, is
likely to bolster the Fed's case for tightening monetary policy. The
report is due at 8:30 a.m. ET.
In U.S. corporate news, shares of Oracle were up 3.5 percent at
$40.10 premarket after the enterprise software company's quarterly
profit beat estimates.
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Merck was up 2.2 percent at $53.58 after Jefferies raised its
price target on the stock.
Valeant Pharmaceuticals was down 6.3 percent at $31.39 after a host
of brokerages cut their ratings on the stock. The Canadian drugmaker
halved in value on Tuesday after it warned of a debt default.
Dow e-minis were up 2 points, or 0.01 percent, with 3,262 contracts
changing hands.
S&P 500 e-minis were up 0.25 points, or 0.01 percent, with 72,678
contracts traded.
Nasdaq 100 e-minis were up 2 points, or 0.05 percent, on volume of
4,027 contracts.
(Reporting by Abhiram Nandakumar in Bengaluru; Editing by Don
Sebastian)
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