Fed Rate Decision Looms: Will Markets Get the Hike They're Priced In?

The US stock market has opened mixed following a two-day slide, with lower oil prices bringing some relief ahead of the Federal Reserve's interest rate decision later today.

Elevated Treasury yields, inflation, and ongoing hostilities in the Middle East are limiting risk appetite. Expectations are for a 25 basis point hike to 3.75%, 4%, with nearly 93% of market participants pricing in this move.

The focus will be on whether policymakers validate expectations of a second rate hike this year. Federal Reserve Chair Kevin Warsh's comments, the dot plot, and updated growth and inflation forecasts will provide clues to the market.