The Federal Reserve's policymaking committee began a two-day meeting this morning to discuss whether the central bank needs to take action to further stimulate the economy.
In the last few months, economists have questioned whether the economic recovery is slowing after reports showed indicators like unemployment rising slightly in May.
Federal Reserve Chairman Ben Bernanke will announce any changes to policy in a press conference Wednesday afternoon.
Many economists predict that the Federal Reserve will extend the so-called Operation Twist program, which expires at the end of the month.
Operation Twist is a monetary maneuver in which the Federal Reserve buys and sells bonds in an effort to drive down interest rates of 10-year bonds. For an explanation of how this works, click here.
The expectation that the Federal Reserve will announce some type of policy change tomorrow drove up the stock market in trading this morning. The Standard and Poor's 500 index rose to its highest point in the last month, according to Bloomberg.