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Stocks Slip While Awaiting Fed Decision

Stocks opened slightly lower on Wednesday as a key decision from the Federal Reserve is expected this afternoon.

The Dow Jones Industrial Average fell just a fraction of a percent. The S&P 500 and Nasdaq Composite both slipped about a third of one percent.

The Fed is expected to cut rates by 25 basis points. This would be the bank’s second rate cut in a decade, after the central bank decided to lower the Fed Funds Rate to a range of 2.0%-2.25% in July. Chairman Jerome Powell will address the media on Wednesday at 2:30 p.m. ET.

Treasury yields fell ahead of the Fed’s announcement. The benchmark 10-year rate dipped to 1.77% from around 1.8%. The 2-year yield traded at 1.7%.

The Fed meeting takes place a couple of days after President Donald Trump called the central bank “boneheads” and asked for zero or even negative rates. The meeting also takes place as China and the U.S. try to reach a deal to end their ongoing trade war.

Trump said on Wednesday that a deal could come soon. China and the U.S. are expected to meet next month. The trade war has dampened the outlook for global economic growth and corporate profit expansion.

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