U.S. equities and stock exchange traded funds increased Wednesday ahead of the Federal Reserve announcement as the markets widely anticipated the first interest rate hike for the year.

The S&P 500 Index, along with related funds including the SPDR S&P 500 ETF (NYSEArca: SPY), iShares Core S&P 500 ETF (NYSEArca: IVV) and Vanguard 500 Index (NYSEArca: VOO), were 0.4% higher Wednesday.

The Fed is scheduled to announce its latest policy statement along with its economic projections at 2 P.M. ET. Looking at the Fed fund futures, options traders have priced in more than a 90% chance of a quarter point hike.

The economy has shown improvements, with the labor market near full employment and inflation rising. Many also anticipate the Donald Trump administration may enact a number of expansionary policies, which could cause the Fed to raise rates at a quicker pace.

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