WASHINGTON (AP) — Investors are cautious as they await the outcome of the U.S. Federal Reserve's first meeting under its new chairman, Jerome Powell, and his subsequent news conference.

The Fed is set to announce its first interest rate increase of the year, a testament to the continued strength of the economy and of the job market in particular. The central bank raised rates modestly three times in 2017 under Powell's predecessor, Janet Yellen, whom he succeeded last month.

Once its meeting ends at 2 p.m. Eastern time Wednesday, the Fed will issue a policy statement and update its economic projections before Powell begins taking questions from reporters.

Dow and S&P 500 futures were down 0.1 percent ahead of the Fed announcement, while the dollar was down 0.2 percent at 106.30 yen.