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FOMC decision — What to know in markets Wednesday

Heidi Chung

On Wednesday, The Federal Open Market Committee (FOMC) will be concluding its two-day meeting, and Federal Reserve Chairman Jerome Powell will hold a press conference at the conclusion of the event at 2:30 p.m. ET. Consensus among economists remains that the FOMC will hold short-term interest rates steady at 2.25%-2.50%.

As of Tuesday afternoon, there is a 98% chance that rates stay at the current target range, according to the CME’s FedWatch tool. There is a 2% chance that there could be a rate cut and a 0% chance that there will be a rate hike.

“Inflation has softened in the inter-meeting period, and expectations are building that the next move will be down rather than up. Incoming inflation data will guide the Fed’s discussion as well as Powell’s Q&A,” Morgan Stanley wrote in a note Friday. “We continue to see the Fed on extended hold into the first half of next year—boxed in as it balances a desire to get inflation higher with financial stability concerns from allowing financial markets to heat up.”

On the corporate earnings front, the following reports are scheduled for Wednesday: Clorox (CLX), CME Group (CME), CVS Health Corporation (CVS), Dine Brands (DIN), Estee Lauder (EL), Hilton Worldwide (HLT), Humana (HUM), Molson Coors (TAP), Royal Caribbean (RCL), Scotts Miracle-Gro (SMG), Yum Brands (YUM) before market open; Apache (APA), Avis Budget (CAR), Caesars Entertainment (CZR), Fitbit (FIT), Hyatt Hotels (H), Marathon Oil (MRO), Qualcomm (QCOM), Square (SQ), Cheesecake Factory (CAKE) after market close.

Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.

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