US stock index futures pointed to a steady open during Wednesday’s session, ahead of the US Federal Reserve’s policy decision due later in the day.
In pre-market trade, three key benchmarks were trading higher. S&P 500 futures rose 0.17%, Nasdaq-100 futures advanced 0.79%, largely led by tech stocks, while the Dow Jones Industrial Average futures fell marginally by 0.02%,
Markets largely expect the Fed to hold interest rates steady after lowering rates in each of the last three policy meetings. However, investors will closely track cues about the timing of future cuts.
The meeting also comes as the Fed faces sharp challenges from President Donald Trump’s administration, sparking concerns that its independence from politics could be threatened.
Economists, however, expect policymakers to hold firm as they assess the effects of the three consecutive rate cuts that brought the benchmark lending rate to a range between 3.50% and 3.75%, AFP reported.
Financial markets generally expect the Fed to continue keeping rates unchanged until its June meeting, according to CME FedWatch.
Wait-and-see approach expected despite Trump pressure
The recent rate cuts announced by the US Fed were backed by a cooling labour market. However, analysts expect solid GDP growth, relatively low unemployment, and stubborn inflation will lead Fed officials to adopt a wait-and-see approach.
The lack of urgency, however, could again put the central bank at odds with Trump, who has repeatedly called for large rate reductions.
Trump has sharply escalated pressure on the Fed since returning to the White House a year ago, seeking to oust Fed Governor Lisa Cook over mortgage fraud allegations, while his administration launched an investigation into Chairman Jerome Powell.
In a rare rebuke this month, Powell slammed the threat of criminal charges against him—over the Fed’s headquarters renovation—as a threat to central bank independence.
Trump-appointed Miran seeks steeper rate cuts
US Federal Reserve Governor Stephen Miran said on Tuesday he saw the need for a significant drop in interest rates in 2026, advocating for a larger decline than the central bank has so far signalled, according to AFP.
Miran was appointed by President Donald Trump last year for a term lasting until late January, as the US leader publicly criticised the Fed for not cutting rates more rapidly.
Since taking office in September, Miran has dissented at all three of the Fed’s policy meetings, pushing for larger rate reductions than his peers on the rate-setting committee.
The Fed voted to lower the benchmark lending rate by a quarter percentage point at each of these gatherings, bringing rates to a range between 3.50% and 3.75%. Miran voted for a larger half-percentage-point cut on each occasion.
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