The central bank is also expected to announce plans to begin unwinding its $4.2 trillion portfolio of Treasuries and mortgage-backed securities, almost a decade after the global financial crisis.
The central bank is likely to keep interest rate unchanged and say that it will start unwinding its holdings of about US$4.2 trillion in bonds and mortgage-backed securities. The S&P 500 .SPX gained 2.78 points, or 0.11 percent, to 2,506.65, hitting its fifth record closing high in the last six sessions.
The continued decrease surprised economists, who had expected existing home sales to edge up to an annual rate of 5.46 million. Retail sales were down 0.2% last month, missing estimates for a slight gain, while sales excluding autos and gas fell 0.1% versus 0.3% expectations.
United States economists have been flummoxed by persistently weak inflation this year but consumer prices jumped 0.4% in August, helping push the market odds of a December rate hike above 60% by Monday, up from just 37% a month ago.
The sector got a boost after the Fed announced that it will likely raise its key short-term interest rate one more time before the end of the year. A clearance of the 6020 level would be a sign that the buyers are going to continue to reach higher, and given this, I believe that pullbacks will continue to be buying opportunities. The yield on the 10-year Treasury note jumped to 2.27 percent from 2.25 percent late Tuesday. Singapore added more than one percent, with Wellington 0.2 percent higher and Taipei climbing 0.4 percent. Progressive shares rose $1.32 to $47.63.
The Labor Department said imports prices climbed by 0.6 percent in August after edging down by 0.1 percent in July.
ENERGY: Benchmark U.S. crude added 93 cents, or 1.9 percent, to settle at $50.41 a barrel on the New York Mercantile Exchange. Brent crude, used to price worldwide oils, gave up 34 cents, or 0.6 percent, to close at $55.14 a barrel in London. Meanwhile, after slumping $14.40 to $1,310.80 an ounce in the previous session, gold futures are edging up $0.40 to $1,311.20 an ounce. Apple fell $3.32, or 2.1 percent, to $155.41. Japan's Nikkei 225 Index inched up by 0.1%, while Australia's S&P/ASX 200 Index dipped by 0.1%.
On the currency front, the US dollar is trading at 111.47 yen compared to the 111.57 yen it fetched at the close of NY trading on Monday.
The US dollar strengthened after the news, gaining 0.28% on the pound and 0.99% against the Euro.