Major US equity indices were little changed during the opening hour of trade on Wednesday as traders refrained from placing aggressive bets ahead of the much awaited Fed decision.
Today's subdued trading action came after all the three key benchmark indices closed at fresh record highs and hence, could be categorized as consolidation, with all eyes glued to the outcome of a two-day FOMC meeting.
Although the Fed is widely expected to refrain from raising interest rates, announcement over the central bank's plan to start unwinding its massive $4.5 trillion balance sheet would make it a historic meeting today.
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Given that the balance sheet normalization is largely priced in, any immediate market reaction is likely to be muted and might turn out to be short-lived.
Investors will also closely scrutinize the Fed Chair Janet Yellen's views on inflation, which would influence December rate hike expectations and eventually provide some near-term impetus for the markets.
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