The Federal Reserve's September policy meeting kicks off on Tuesday, and markets overwhelmingly expect the Fed to raise interest rates by 25 basis points on Wednesday amid persistently high inflation.

Persistent inflation and a resilient U.S. economy make a Fed rate hike likely this week. See what the decision could mean for stocks, bonds and Treasury yields.

Bitcoin, crypto stocks and digital assets slipped as Wall Street braced for two major Washington decisions.

The messaging Fed Chairman Kevin Warsh issues at the press conference could have a large effect on how equities respond.

As of 4:00 a.m. ET, Nasdaq and Dow futures declined 0.7%, S&P 500 futures fell 0.6%, and Russell 2000 futures fell 0.8%. On Stocktwits, retail sentiment for the SPDR S&P 500 ETF (SPY), an exchange-traded fund that tracks the S&P 500 Index, and Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100 Index, has remained 'extremely bearish.'

The Fed could issue its first interest rate hike since 2023 this week. Here's where to move your money if that occurs.

The Fed meetings come as inflation has been pushed higher by oil prices and robust consumer spending. Investors are overwhelmingly pricing in a rate hike, and if the central bank does not follow through, it could trigger further turmoil in bond markets, where long-term yields have already risen to nearly two-decade highs.

The bond market sell-off is raising the stakes for the Federal Reserve’s monetary policy meeting this week and putting a spotlight on the central bank’s commitment to reining in inflation.