Stocks: Fed on deck amid Cyprus turmoil

At 2 p.m. ET, the Federal Reserve will release its latest statement on interest rates and economic forecasts.

NEW YORK (CNNMoney) Investors will be watching developments out of Cyprus on Wednesday after lawmakers voted against a tax on bank deposits, calling a bailout deal into question.

U.S. markets didn't react sharply to the news Tuesday, but that could change if the situation remains unresolved.

Investors will also have the Federal Reserve's latest outlook on the U.S. economy to consider.

At 2 p.m. ET, the Fed will release its latest statement on interest rates and economic forecasts. Chairman Ben Bernanke is expected to maintain a gloomy outlook despite stronger economic data.

U.S. stock futures were modestly higher ahead of the opening bell.

In corporate news, FedEx (FDX, Fortune 500) reports earnings before the open. The company is often viewed as a bellwether for the broader economy due to the global scope of its business.

Also reporting before the open are General Mills (GIS, Fortune 500) and home-builder Lennar (LEN), which will give a read on the state of consumer spending and the housing recovery.

U.S. stocks finished mixed Tuesday. The Dow Jones industrial average added four points, while the S&P 500 and Nasdaq declined more than 0.2%.

Adobe Systems (ADBE) shares rose in after-hours trading after the graphics software maker beat earnings estimates.

Fear & Greed Index

European markets rose in morning trading, while Asian markets posted gains. The Shanghai Composite added 2.7% and Hong Kong's Hang Seng advanced 1%. Tokyo's stock market was closed for the first day of spring.

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