Wall Street remained on hold Wednesday morning, with stock futures essentially flat ahead of an afternoon statement from the Federal Reserve.
Amid signs that the U.S. economy is beginning its recovery, traders are anxious for confirmation from the central bank that conditions are improving. Even so, there is little expectation of any action on interest rates , which remain historically low. Dan Cook, senior market analyst at IG Markets in Chicago , said he would not be surprised if the Fed announced it would hold off on spending the remainder of the $300 billion it allocated to purchase Treasury debt, to gauge the market's reaction. To date the central bank has spent a little over $250 billion on U.S. goverment bonds. , Forbes reports.
Investors have put a summer rally on hold as they search for fresh signs the economy is strengthening and pulling out of its recession. The latest assessment on how the economy is faring will come from the Fed, which wraps up a two-day meeting Wednesday afternoon.
It is widely expected that the central bank will hold its key interest rate at a historic low near zero percent. With rates unlikely to change, investors will be looking to see what the Fed says about the economy in its statement that accompanies the rate decision , The Associated Press reports.
"The market already has taken into account that the economy is in recovery. Today's announcement will show the strength of that recovery." , Reuters reports.