Futures flat ahead of Fed’s rate hike

US stock index futures were muted on Wednesday as investors stayed away from placing big bets ahead of the Federal Reserve’s much-anticipated decision on interest rates.

The central bank is widely expected to hike the fed-funds rate by half a percentage point to 4.25-4.50%. The decision will be announced at 2 p.m. ET and will be followed by Chair Jerome Powell’s press conference.

Data on Tuesday showed that US consumer prices grew at their slowest pace in about a year in November, sparking an early rally on Wall Street, with the S&P 500 (.SPX) jumping as much as 2.8% to a three-month high, reported Reuters.

The benchmark index, however, closed sharply off its high on concerns over the central back remaining aggressive.

“This CPI release ultimately cements the case for a downshift in the pace of Fed rate hikes on Wednesday,” BCA Research said in a note. “Although it raises the odds of a pause in H1, labor market dynamics remain too hot to call for rate cuts in the near term.”