Why stocks could pull back 5% depending on how the Fed answers this key question Wednesday

Stock and bond investors face a crucial twist Wednesday when the Federal Reserve delivers its interest-rate decision.

While the central bank is almost fully expected to leave rates unchanged Wednesday, market participants will be paying close attention to the so-called dot plot for clues to the timing and scope of future rate cuts. The dot plot is the graph representing individual policy makers’ expectations for future interest rates.

Check out: Powell could still hammer U.S. stocks on Wednesday even if the Fed doesn’t hike interest rates

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