Investors Cautious Before Rate Meeting
NEW YORK — Wall Street finished little changed Monday as investors turned cautious ahead of the Federal Reserve’s two-day policy meeting, which starts today.
Stocks fluctuated most of the morning before turning higher for much of the day. Prices then pulled back modestly in the final minutes of trading.
Fed policymakers are widely expected to cut interest rates by a quarter point on Wednesday, then leave them steady for the balance of the year to help ward off inflation.
“Investors are holding their breath for the Fed, and not even these high-profile deals are shaking people off of their hands,” said Jack A. Ablin, chief investment officer at Harris Private Bank. “The direction of Fed policy hangs in the balance, and there are people like me that hope the central bank quits sooner rather then later.”
Bond prices edged higher after suffering big losses last week. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.82 percent from 3.87 percent.
