Here's how the pros are trading Wednesday's Fed decision

Published Wed, Dec 15 202111:21 AM ESTUpdated Wed, Dec 15 20212:41 PM EST

Jesse Pound @/in/jesse-pound @jesserpound

The Federal Reserve's statement on Wednesday could shift the stock market into a new phase, and Wall Street pros have been looking for ways to change their portfolios. The Fed announced announced on Wednesday that it would speed up its tapering process, meaning that it is on track to end its purchase of bonds and mortgage backed securities earlier than it previously projected. The central bank was widely expected to take more aggressive steps in this meeting, though the Fed's forecast of three rate hikes in 2022 may have been slightly more than some expected. Here is how some Wall Street pros said to play Wednesday's decision ahead of the Fed's announcement. One of the more popular plays with rising interest rates are financials, which can see their profit margins expand as yields rise. "I think you have to have exposure to financials. That's the easy and obvious sector, but they will benefit from higher rates ... you have to check that box," said Kevin Simpson of Capital Wealth Planning. Sarat Sethi, DCLA managing partner and portfolio manager, named JPMorgan as one of his picks. "I think the financials will react positively, especially those that have improving net interest margin stories," said Sethi. Another way to get upside exposure to bank stocks is call options. Goldman's derivatives research team said in a note to clients on Wednesday that there could be large intraday moves during the rest of the week. The firm named Fifth Third Bank , Discover Financial and Truist as stocks that usually see big moves on Fed decision days and have cheap options contracts. There are other sectors that can outperform in a rising rate environment as well. "The best trade post this week's Fed meeting may be less about finding the late cycle winners and more about the companies that are best position to ride out a higher rate environment," said Ally Invest's Lindsey Bell. "I'd look to companies and sectors with high levels of cash and positioned to weather the mid-cycle moderation in growth. Some potential winners could be consumer discretionary, staples and growth." Sethi added energy as a potential winner when rates are higher, and named Chevron as one of his picks. One unknown for investors is if the Fed's hawkish turn will be enough to slow inflation. Simpson said that, if inflation starts to abate, then consumer discretionary could be a winning sector moving forward. Additionally, he said he likes health care stocks including UnitedHealth Group while the inflation outlook is uncertain. The Fed's size and importance in the global economy means that its decision can have ripple effects throughout international markets as well. Shannon Saccocia, chief investment officer at Boston Private, said that invests might want to get some broad exposure to global markets ahead of the decision. "Our view is that international stocks could be poised to perform well even if the U.S. dollar strengthens modestly, given the valuation differential and more importantly the sector composition of the MSCI EAFE; ETFs such as IQLT and ACWX are good choices," Saccocia said. -CNBC's Maggie Fitzgerald, Tanaya Macheel and Michael Bloom contributed to this report.

Federal Reserve Board Chairman Jerome Powell waits for the beginning of a hearing before Senate Banking, Housing and Urban Affairs Committee on Capitol Hill November 30, 2021 in Washington, DC.

Alex Wong | Getty Images

The Federal Reserve's statement on Wednesday could shift the stock market into a new phase, and Wall Street pros have been looking for ways to change their portfolios.