The STOXX 50 pared early gains to trade near the flat line at 5,370 points on Wednesday, while the broader STOXX 600 was little changed at 551, as investors adopted a cautious stance ahead of the US Federal Reserve’s policy decision later today. The Fed is widely expected to deliver its first rate cut in nine months, reducing rates by 25 basis points to their lowest level since late 2022 amid a slowing labor market. Markets will also scrutinize the Fed’s quarterly “dot plot” projections for clues on the trajectory of future policy. In economic data, UK inflation held steady at 3.8% in August, unchanged from July and near January 2024 levels, just ahead of the Bank of England, which is expected to keep rates on hold tomorrow. In corporate news, PostNL rose more than 1.5% after unveiling a new strategy at its Capital Markets Day, announcing plans to split its Parcels business into two divisions. Novo Nordisk gained 1.6% after Berenberg upgraded the Danish drugmaker to "Buy" from "Hold".