Reuters/Gary Cameron
At 2 p.m. ET, the statement following the Federal Open Markets Committee's meeting is expected to show that members decided to lift the Federal Funds rate by 25 basis points to a range of 0.50%-0.75%.
Markets will be paying the most attention to the Fed's updated outlook on economic growth, inflation and future interest rates. They'll look out for any changes in the language on the amount of slack in the labor market and whether near-term risks to the economy remain "balanced."
When the Fed in December 2015 moved for the first time since the financial crisis, it projected four rate hikes this year.
However, it whiffed big on that estimate as the realities of market volatility, sluggish inflation and underwhelming economic growth set in. To be fair, the Fed's projections were always conditional on incoming data.
However, much has changed - and improved - in the past year, prompting the Fed to aggressively signal in recent months that it would raise rates again. By lifting rates from near-zero, the Fed is ending an era of unprecedented policy, and giving the economy room to advance on its own. A higher Fed funds rate would lift rates on things like credit cards and mortgages.
2017 may be the year that fiscal policy starts to take over in a significant way, as President-elect Donald Trump takes office. Trump has pledged to cut taxes for corporations and individuals, and to invest about $1 trillion on infrastructure. Wall Street already thinks these steps will spur economic growth and inflation, while supporting company earnings; stocks surged to new highs post-election, while bonds sold off.
Trump's proposals are still uncertain, meaning that the Fed is unlikely to capture the full extent of their impact in its outlook right now. We may hear some more on this during Fed Chair Janet Yellen's press conference that begins around 2:30 p.m. ET.
We'll have the full statement and its highlights once it's out, so refresh this page for updates.