The Federal Reserve is widely expected to boost the benchmark for short-term borrowing costs at a meeting that concludes Wednesday. Fed officials may also signal that they might pause or halt the rate-hiking campaign early next year.
President Donald Trump's $1.5 trillion of tax cuts, designed to stimulate growth, have decimated government revenue, ballooning the federal budget deficit and forcing Treasury Department officials to cover the gap by borrowing money in ever-growing amounts. Investors face losses in 2019 as yields on Treasury bonds necessarily rise -- to attract enough buyers for the debt.
Data shows market volatility can impact expectations of the FOMC's rate decisions and the response to the rate announcement.