What Is Next for the Fed After It Raises Rates?

The Federal Open Market Committee, the monetary policy arm of the U.S. central bank, is expected raise interest rates, a decision that is all but a given in Wall Street's eyes. CME Group fed funds futures have priced in a more than 99% chance of a 25-basis-point increase. Should the Fed raise rates, it will be the second of three expected hikes this year.

Weeks of hawkish Fed commentary has cushioned markets for a June rate hike. In a number of speeches, members have pointed to a tightening job market, the risk of being behind the curve on inflation, and a generally healthy economic recovery.

The decision on rates is expected at 2 p.m. ET on Wednesday. A press conference with Fed Chair Janet Yellen is scheduled for around 2:30 p.m. The Fed will also release updated economic growth and rate hike forecasts, and could outline how and when it will begin reducing its $4.5 trillion balance sheet.

This article was written by a staff member of TheStreet.