The Federal Reserve is widely expected to raise interest rates at its final meeting of the year. Amid mounting worries about the economic outlook for 2019, the Fed is also expected to emphasize that future rate hikes will depend on the continued strength of the domestic economy.

Fed Chairman Jerome H. Powell faces the challenge of convincing investors that the Fed is striking the right balance. The Fed will issue a policy statement and a set of economic projections at 2 p.m. Mr. Powell will then hold a news conference at 2:30 p.m. to answer questions about the Fed’s plans.

Here is what to watch as we head into Fed Day.

Another rate increase

The Fed on Wednesday is widely expected to recognize the continued strength of the economy by announcing a quarter-point increase in its benchmark interest rate after a two-day meeting of the Federal Open Market Committee. It would be the fifth consecutive quarter in which the Fed has raised its benchmark rate. The rate would move into a range between 2.25 percent and 2.5 percent.

The Fed also is expected to announce that it will continue to reduce its portfolio of Treasuries and mortgage-backed securities, which it accumulated after the financial crisis as part of its broader campaign to hold down borrowing costs. The holdings, which peaked at about $4.5 trillion, have now declined to about $4.1 trillion, and the Fed is reducing its holdings by $50 billion per month.