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Despite uncertainty around the U.S. economic outlook and disagreements over the direction of future monetary policy, the Federal Reserve is still widely expected to cut interest rates to a range of 1.75% to 2% on Wednesday.

Historically, stocks tend to fare better when the Fed takes a more cautious approach, Dow Jones Market Data shows .

… Powell will have to walk a fine line,” says Mark Freeman, chief investment officer at Socorro Asset Management.

According to CME Group data , Federal-funds futures now show only a 47% chance that rates get cut on Wednesday, sharply down from 92% a week ago.