While the Fed is widely expected to leave interest rates unchanged at the conclusion of its policy meeting at 18:00GMT, or 2:00PM ET, Wednesday, the U.S. central bank could provide guidance on its pace of tightening over the next several months.
Fed Chair Janet Yellen is to hold what will be a closely-watched press conference 30 minutes after the release of the Fed's statement, as investors look for any change in tone about the economy or future rate hikes. The central bank will also release its latest forecasts for economic growth and interest rates.
Investors all but ruled out a rate hike in June after U.S. employment data earlier this month showed the economy added just 38,000 jobs last month, the smallest increase since September 2010.
Market players are pricing in a 20% chance for a rate hike in July and 35% for September, according to CME Group's (NASDAQ:CME) FedWatch tool. December odds were at about 59%.
Besides the Fed, traders will be watching producer price inflation data and the Empire state survey, both due at 12:30GMT, or 8:30AM ET, while industrial production data is due at 13:15GMT, or 9:15AM ET.
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