Markets Brace for Fed Announcement Amid Economic Cooling

U.S. stock index futures rose as investors awaited the Federal Reserve's monetary policy decision. The Fed is expected to keep rates unchanged, despite concerns over trade policies affecting the economy. Analysts predict potential rate cuts, with focus on economic projections and President Trump's tariffs.

On Wednesday, U.S. stock index futures rallied slightly ahead of the Federal Reserve's crucial monetary policy decision, as investors grappled with trade policy uncertainties. The Fed is expected to maintain its overnight interest rate in the 4.25%-4.50% range as it releases its policy statement at 2 p.m. ET.

Traders anticipate a significant rate cut by at least 50 basis points by December, starting with a possible reduction in July, based on data analyzed by LSEG. Market focus will shift to new economic projections shedding light on how U.S. President Donald Trump's policies might influence growth, inflation, and unemployment.

Analysts and investors keenly await Trump's upcoming tariff announcements set for April 1, amid warnings of reciprocal trade barriers. Meanwhile, Dow, S&P 500, and Nasdaq E-minis reported gains as Fed Chair Jerome Powell prepared to address economic concerns later in the day.

(With inputs from agencies.)