Fed Interest Rate Decision Looms as Markets Await Rate Hike Clues

The Federal Reserve's interest-rate decision is set to be announced on Wednesday afternoon, following a meeting that began on Tuesday. The committee will consider employment and inflation data released in August, which showed the labor market remains healthy and inflation above the central bank's 2% target.

Employers added more jobs than expected in August, while wholesale inflation came in hotter than anticipated. The Consumer Price Index rose 3.4% year-over-year in August, matching July's rate and economists' predictions.

The Fed meeting takes place amidst a relatively quiet week for markets. Salesforce is hosting its annual Dreamforce conference, featuring remarks from Anthropic CEO Dario Amodei. Additionally, August U.S. retail spending estimates are due on Wednesday.