The Federal Reserve is set to conclude its two-day policy meeting on Wednesday, with Fed Chair Jerome Powell delivering his typical post-meeting afternoon conference. Markets are pricing in a roughly 85% probability of another 25-bps hike. But with recent banking failures roiling financial markets, will Powell stay the course and pull the trigger on another hike?

Failures across the financial sector including Silicon Valley Bank have roiled global markets. But stocks have rebounded after the Fed guaranteed all uninsured deposits. Further actions to stabilize a worrisome banking sector also helped propel markets in recent days, including a deal involving the UBS (UBS Quick QuoteUBS - Free Report) purchase of troubled Credit Suisse.

Markets are searching for a positive catalyst to help fuel another leg higher. The Fed taking its foot off the gas would certainly fit the bill. Stocks are typically volatile on the day of a rate-hike decision, so there is potential for a drastic move if the Fed decides to pause.