The U.S. Federal Reserve meets today and is expected to hold interest rates steady as it considers ongoing concerns about the health of the global economy as fresh signs of domestic inflation are starting to appear.
The Fed's latest policy statement will be released at 2 p.m. EDT (1800 GMT) along with updated economic projections and Fed Chair Janet Yellen is scheduled to hold a press conference at 2:30.
Investors are eager to hear what Yellen has to say about the future path of interest rate rises.
According to JP Morgan Asset Management's global market strategist Kerry Craig, "The Federal Reserve can't hike rates unless the market expects to see it. Right now the market doesn't expect to see it. It's very difficult for them to move against the market because that adds to volatility."
Last Hike in December
The central bank hiked rates last December for the first time in nearly a decade and after keeping interest rates close to zero for seven years and injecting $4 trillion into the US economy, the central bank is still taking baby steps as it tries to bring lending rates back to normal levels. Voices were cautious at its last policy meeting in January, amid a selloff on financial markets, weaker oil prices and falling inflation expectations.
The US economy is recovering, with the unemployment rate now 4.9 per cent, GDP expected to grow around 2.5 per cent this year and some encouraging signs of inflation - notwithstanding plunging oil prices.
However, retail sales figures released overnight showed consumer spending fell 0.1 per cent in February, and the January result was revised down sharply to a 0.4 per cent decline.