Market-watchers expect the U.S. central bank to raise rates for one last time this year during its December meeting, after it announced in October that despite inflation, a rate hike was all but certain.
Aside from an interest rate decision, traders will be paying close attention to what the Fed will say in regards to tax reform and the state of the U.S. economy.
Fed Governor Lael Brainard will be at Rochester, New York, speaking at the Awards Ceremony for Workforce Development Video Campaign.
In earnings, Nordson, ABM Industries and Pier 1 Imports are all set to report after the bell. The consumer price index (CPI) rose 0.4 percent in November, as expected.
In the previous session, U.S. equities closed higher amid growing optimism that Republican lawmakers could overhaul the corporate tax system. While tax reform is expected to keep investors on edge Wednesday, another area of domestic politics is set to shake up sentiment.
Democrat Doug Jones is projected to be the apparent winner of a Senate election in Alabama, beating scandal-ridden Republican Roy Moore in one of America's deepest conservative states, according to NBC News.
The result is expected to trigger ramifications for U.S. politics, with this win marking the first time in a quarter-of-a-century that a Democrat has been elected to the Senate from Alabama.