On Wednesday, June 14, financial markets are exercising caution as investors prepare for the Federal Reserve’s monetary policy announcements. The Fed is set to release the revised Summary of Economic Projections, also known as the dot plot, and FOMC Chairman Jerome Powell will provide insights on the policy outlook during a press conference. Additionally, the US economic agenda includes the release of the Producer Price Index (PPI) for May, while Eurostat will publish Industrial Production data for April.The US Bureau of Labor Statistics (BLS) reported a decrease in inflation in the US, as measured by the Consumer Price Index (CPI), from 4.9% in April to 4% on a yearly basis in May. The Core CPI, which excludes volatile food and energy prices, followed a similar trend, declining from 5.5% to 5.3% during the same period as anticipated. Following the release of the inflation report, the probability of a 25 basis point Fed rate hike, as indicated by the CME Group FedWatch Tool, dropped below 10%.Analysts from Danske Bank provided a preview of the FOMC June meeting, expressing expectations that the Fed will maintain unchanged rates. The focus will be on the communication surrounding a potential hike in July and the updated dot plot. The analysts expressed skepticism regarding the likelihood of such hikes materializing.The US Dollar Index is consolidating below 103.50, following the losses incurred on Tuesday, while US stock index futures display mixed trading. Meanwhile, the benchmark 10-year US Treasury bond yield fluctuates around 3.8%.EUR/USD experienced an ascent on Tuesday, reaching its highest level in nearly a month at 1.0825, before entering a consolidation phase around 1.0800 on Wednesday.GBP/USD demonstrated significant gains on Tuesday and continued to rise early on Wednesday, with the pair trading above 1.2600 at last observation.USD/JPY concluded Tuesday with three consecutive days of positive performance but lost its bullish momentum after testing 140.00.Gold prices climbed to $1,970 initially in response to the soft US inflation data on Tuesday but reversed direction due to a significant rebound in US Treasury bond yields during the late American session. As the European session commenced on Wednesday, XAU/USD maintained modest recovery gains around $1,950.