Fra Reuters – Financial markets braced for what was expected to be a U.S. interest rate hike later on Wednesday as a gauge of global stocks edged higher and the dollar dipped, while oil pulled out of a six-session slide.
The U.S. Federal Reserve was due to release it policy statement at 2 pm EDT (1800 GMT), with the central bank widely expected to raise interest rates for the second time in three months.
Market participants will be watching for whether the Fed will signal an even faster pace of monetary tightening this year than the three rate hikes it projected in December.
“The 25-basis point-hike is fully priced in, so that’s not even going to be a factor … it’s more what the Fed’s path is going to be going forward,” said Societe Generale currency strategist Alvin Tan in London.
