The main US inventory indexes have backed off file highs forward of the Federal Reserve’s all-important March assembly.On Wednesday, that pressure will lastly resolve.The US central financial institution is ready to launch its newest financial coverage choice and up to date financial projections at 2:00 p.m. ET on Wednesday afternoon, with buyers in search of a solution to 1 key query: does the Fed nonetheless suppose it’s going to minimize charges thrice in 2024?Latest information displaying inflation hasn’t dropped as quick as anticipated has pushed out market forecasts for Fed fee cuts this yr to 3 from six. The query, then, is whether or not a couple of months of cussed inflation information might be sufficient to immediate an additional tweak from the Fed.Elsewhere on the calendar this week, Nike (NKE), Lululemon (LULU), FedEx (FDX), and Micron (MU) are all set to report outcomes Thursday, highlighting what ought to in any other case be a comparatively quiet schedule for company outcomes. On the IPO entrance, Reddit is ready to make its public market debut on Thursday underneath the ticker ‘RDDT’ as buyers proceed to gauge how a lot final yr’s frozen marketplace for new points has thawed in 2024.Nvidia (NVDA) may also host its annual GTC convention on Monday, with buyers keenly centered on the corporate’s product roadmap because it rides a large surge in demand for its chips amid the AI growth.The inventory is up greater than 260% during the last yr, although shares have been roughly flat during the last two weeks with buyers in a holding sample forward of each this occasion and the Fed’s assembly this week.Fed in focus Traders aren’t considering any change within the Fed’s benchmark rates of interest, which ought to stay within the vary of 5.25%-5.50%, the place they’ve stood since final July.Which suggests buyers may have their full consideration each of the Fed’s newest Abstract of Financial Projections (SEP) and, as ever, Fed Chair Jerome Powell’s press convention, which is able to kick off half-hour after the SEP and coverage assertion are launched.Story continuesDeutsche Financial institution chief US economist Matthew Luzzetti wrote in a word to shoppers on Friday that he believes the latest inflation readings will immediate the Fed to lean “hawkish” with its messaging on Wednesday.In different phrases, do not anticipate the Fed to spend a lot time pushing again towards market expectations they’re content material to attend earlier than chopping charges this yr.”Chair Powell’s press convention ought to emphasize that, whereas officers nonetheless believe that inflation is on the specified path, realization of softer inflation prints over the approaching months is a needed situation to start easing,” Luzzetti stated.Popping out of the Fed’s December assembly, buyers talked about the potential of a January fee minimize with March seen as all however a formality. Forward of this week’s assembly, information from the CME Group confirmed fee cuts aren’t seen as having a larger than 50% probability till July.A market dip from the dots? In December, a part of the SEP often called the “dot plot,” which maps out policymakers’ expectations for the place rates of interest might be headed sooner or later, confirmed officers anticipate three rate of interest cuts this yr.Financial institution of America US economist Michael Gapen wrote in a word to shoppers that any modifications to that forecast might be “the largest focus for markets” on Wednesday.Economists have famous that it will take simply two officers seeing larger charges than the final launch to push the consensus to simply two fee cuts this yr.Given markets have moved larger on the prospect of the Fed chopping charges this yr, a shift to fewer fee cuts might be thought of a menace to the market rally. However some argue that should not matter.Federal Reserve Chair Jerome Powell holds a press convention following the discharge of the Fed’s rate of interest coverage choice on the Federal Reserve in Washington, U.S., January 31, 2024. REUTERS/Evelyn Hockstein (Reuters / Reuters)Renaissance Macro’s head of financial analysis Neil Dutta wrote in a word to shoppers this week, for example, that he is “skeptical” markets would transfer a lot if the Fed tasks one much less fee minimize this yr.Dutta argued that if the Fed removes a projected rate of interest minimize this yr it will possible come alongside an upward revision to financial development. “The erasure of a minimize in 2024 will imply little for the fairness market, it is a benign occasion,” Dutta wrote. “Finally, a stronger nominal development outlook implies a stronger earnings outlook.”Financial institution of America US and Canada fairness strategist Ohsung Kwon provided an analogous opinion when lately requested by Yahoo Finance if the Fed poses a danger to the agency’s new name for the S&P 500 to succeed in 5,400 by the top of this yr on account of stronger company earnings.”If the Fed chooses to not minimize, then I feel it’ll be as a result of the economic system is just too scorching,” Kwon stated. “I do not suppose that earnings are available in decrease as a result of the Fed would not minimize if the economic system is just too scorching.”The chance for corporates could be in refinancing debt, Kwon stated. However with 75% of the S&P 500’s debt already long-term mounted, the influence of upper charges there could be restricted for the massive cap index.Weekly calendarMondayEconomic information: New York Fed Providers Enterprise exercise, March (-7.3 beforehand); NAHB housing market index, March (48 anticipated, 48 beforehand)Earnings: No notable earnings.TuesdayEconomic information: Constructing permits month-over-month, February (+2% anticipated, -0.3% beforehand); Housing begins, month-over-month, February (+7.4% anticipated, -14.8% beforehand)Earnings: XPeng (XPEV)WednesdayEconomic information: FOMC fee choice; MBA mortgage functions, week ending March 15 (7.1% beforehand)Earnings: Chewy (CHWY), 5 Beneath (FIVE), Normal Mills (GIS), Guess (GES), KB Residence (KBH), Micron (MU)ThursdayEconomic information: Philadelphia Fed enterprise outlook, March (-1.3 anticipated, 5.2 beforehand); Preliminary jobless claims, week ending March 16 (215,000 anticipated, 209,000 beforehand); S&P US manufacturing PMI, March (51.8 anticipated, 52.2 beforehand); S&P World US providers PMI, March (52.0 anticipated, 52.3 beforehand); S&P US composite PMI, March (52.5 beforehand); Main index, February (-0.2% anticipated, -0.4% beforehand); Present house gross sales, February, month-over-month (-1.6% anticipated, 3.1% beforehand)Earnings: Accenture (ACN), Academy Sports activities + Open air (ASO), Darden Eating places (DRI), FactSet (FDS), FedEx (FDX), Lululemon (LULU), Nike (NKE)FridayEconomic information: No notable financial information.Earnings: No notable earnings.Josh Schafer is a reporter for Yahoo Finance. 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