The central bank is expected to keep rates steady, but the focus will be on chair Jerome Powell and whether he offers any signs that cuts may be on the near horizon.

“Investors are expecting a strong signal for a September rate cut by the Fed,” said Bryce Doty, senior portfolio manager at Sit Investment Associates. “But it’s difficult for the Fed to sound overly confident on a future rate cut because that will beg the question, ‘Why not cut now?’ Consequently, investors are likely to be disappointed by the tone and posture of the Fed meeting.”

Wall Street is also set to wrap up a choppy month of trading. The S&P 500 and Nasdaq are tracking to end July down 0.4% and 3.3%, respectively.

The Dow and Russell 2000 index of small-cap socks are slated to finish the month higher by more than 4% and 9%, respectively. That underscores the market rotation’s boost to stocks that are smaller and more cyclically oriented.