By Liz Moyer

-- Stocks surged on Tuesday ahead of the Federal Reserve’s policy decision, set to be released tomorrow afternoon.

Because of the turmoil in the banking sector over the past week, futures traders are on a quarter of a percentage point increase. A small group of traders believe there will be no increase.

The Fed is still fighting inflation despite evidence that prices have started to cool. bounced in February as the average sale price dipped for the first time in 11 years. Mortgage rates have cooled off and that is bringing buyers back into the market.

Along with the decision on rates and a press conference in the afternoon starring Fed Chair Jerome Powell, the Fed will release the so-called dot plot, a chart representing the policymakers’ economic forecasts. Investors will be watching to compare this month’s dot-plot to the last one in December to see how much their minds have shifted.

Next week brings the latest print of gross domestic product for the fourth quarter and inflation data in the form of the personal consumption expenditure index, a key measure for the Fed on inflation trends.

Here are three things that could affect markets tomorrow:

1. Fed decision

The Federal Open Market Committee’s rate will be issued at 14:00 ET, and a press conference will start at 14:30 ET and will be streaming from the Fed’s YouTube page. Along with the rate decision, the Fed will release the forecasts for unemployment, inflation, and economic growth. Investors will be comparing the newest forecasts with the ones from December to gauge how much the Fed’s thinking is changing given the turmoil in banking in recent weeks.

2. Chewy earnings

Online pet products retailer (NYSE:) is expected to report earnings of 11 cents and revenue of $2.6 billion.

3. KB Home earnings

Amid shifts in the housing sector, home builder KB Home (NYSE:) is expected to report earnings per share of $1.15 on revenue of $1.3B.