The Fed is expected to announce a quarter point rate hike Wednesday, and is likely to signal another hike is coming later in the year.
The Fed's actions are unlikely to rock markets, but the focus will be on what kind of message the Fed sends and how hawkish it sounds on the economy and future rate hikes.
As Joseph LaVorgna, the chief economist of the Americas at Natixis, noted, three quarters of the year are already over since the Fed put its 2018 forecast together and GDP has been faster, inflation is at or above target, and there is anecdotal evidence wage pressures are picking up. "They're not going to do less, they're going to do more," he said. "The fact the equity market just hit an all time high is going to offset any concerns when it comes to tariffs or emerging markets."