The Fed kicked off its two-day meeting today in Washington. The most likely outcome is a 0.75% rate hike, which would bring the Fed’s target rate to between 3–3.25%.
The stock market was down significantly today ahead of tomorrow’s announcement. Importantly, the 10-year Treasury yield rose to 3.57% today, the highest level in over a decade.
Rising yields are especially bad for growth stocks, which have accounted for many of the market’s gains in recent years.
Meanwhile, the Atlanta Fed has once again downgraded its third-quarter growth estimate to 0.3%. Its previous estimate was 0.5% and its estimate before that was 1.3%. Just look at the trend.