In an effort to bounce back from recent market declines affecting the S&P 500 and Nasdaq, all eyes are on the Federal Reserve's upcoming policy decision on Wednesday. The Fed is anticipated to maintain current interest rates in light of uncertainties surrounding tariffs and recent economic growth worries. The focus will be on the release of the Fed's quarterly economic forecasts, known as the Summary of Economic Projections (SEP), and Fed Chair Jerome Powell's subsequent press conference. There is pressure on Powell to reassure investors regarding the health of economic growth and inflation reaching the 2% mark, amidst concerns about stagflation and fears of a possible recession. Stagflation, characterized by stagnant growth, persistent inflation, and rising unemployment, has stirred unease among investors as they grapple with shifting trade policies and other uncertainties. A recent global survey by Bank of America revealed that 71% of investors anticipate stagflation, the highest level recorded since November 2023. While sentiment indicators have fueled worries, Powell has downplayed their reliability in predicting consumption growth and emphasized a cautious approach to assessing the economic effects of policy changes. Despite his stance, Wall Street firms such as JPMorgan, Goldman Sachs, and Morgan Stanley have lowered their growth projections, citing concerns over trade and immigration policies. This caution has led to a series of downward revisions in year-end S&P 500 targets by various financial institutions.