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US stock futures edged lower on Tuesday as investors braced for Federal Reserve officials to deliver another jumbo rate hike in their fight against persistent inflation.

Futures on the benchmark S&P 500 slipped 0.4%, while futures tied to the Dow Jones Industrial Average fell 100 points, or 0.3%. Contracts on the technology-heavy Nasdaq Composite deleted about 0.5%.

The policy-setting Federal Open Market Committee begins its September meeting today and is expected to tackle a third straight 75-basis increase in its benchmark interest rate at the end of Wednesday’s deliberations. After officials meet, investors will tune in for a speech from Fed Chairman Jerome Powell for more clues about the pace and size of future hikes.

“A third ‘unusually large’ hike would be a reversal from the plan laid out by Chairman Powell in July to slow the pace of tightening, despite the fact that there were few net surprises in the data,” wrote economists at Goldman Sachs led by Jan Hatzius in a note. .

“We see many reasons for the change in plan: the equity market has threatened to undo some of the tightening of financial conditions engineered by the Fed, the strength of the labor market has reduced fears of over-tightening at this point, it now appears that Fed officials want slightly faster and more consistent progress toward reversing overheating, and some may have revalued the short-term neutral rate.”

Bank of America expects the Fed’s dot plot – each official’s forecast for the central bank’s key short-term interest rate – to show an “implicit slowdown” in the pace of hikes at its November meeting but suggests Powell is likely to make the discount this signal and continue to emphasize that increases will depend on data to maintain selectivity for the Fed.

WASHINGTON, DC - SEPTEMBER 19: Renovations continue on the Marriner S. Eccles Federal Reserve Board Building on September 19, 2022 in Washington, DC.  The Federal Open Market Committee (FOMC) is due to hold a two-day meeting on interest rates starting on September 20.  (Photo by Kevin Dietsch/Getty Images)

WASHINGTON, DC – SEPTEMBER 19: Renovations continue on the Marriner S. Eccles Federal Reserve Board Building on September 19, 2022 in Washington, DC. The Federal Open Market Committee (FOMC) is due to hold a two-day meeting on interest rates starting on September 20. (Photo by Kevin Dietsch/Getty Images)

“In other words, if the data were to justify another 75-basis-point rate hike in November, we don’t think the committee would be constrained by its projection,” said BofA analysts led by Michael Gapen in note. “We suspect that the Fed will rely less on forward guidance and more on reliance on data as the policy rate moves further into restrictive territory.”

As Wall Street awaits the outcome of the meeting, the benchmark 10-year US Treasury is well above 3.5%, the highest level since 2011, and the 2-year Treasury note is heading towards 4%.

On the corporate side, shares of Ford ( F ) fell more than 4% in premarket trading after the company warned of higher costs due to inflation and supply chain challenges, making it the latest company to describe their struggle with macroeconomic challenges.

The legacy Detroit-based carmaker anticipates $1 billion more supply costs during the quarter than its previous estimate and supply shortages will affect about 40,000 to 45,000 vehicles, shifting some revenue to the fourth quarter .

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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