ING analysts expect the Fed to signal its base case remains two 25 basis point cuts this year, noting "there is no pressing need for additional rate cuts given that unemployment is low and inflation is still tracking hot."
In February, government data showed that the unemployment rate was a relatively low 4.1 percent, with the labor market remaining stable.
The consumer price index -- a gauge of inflation -- came in at 2.8 percent for February as well, cooler than expected but still some distance from officials' two percent target.
This boosts expectations that the Fed would proceed cautiously as it seeks to lower inflation sustainably.
Inflation is "likely to remain above target through the rest of the year given the impetus from tariffs," ING analysts expect.