The bond market is bracing itself as the Federal Reserve prepares to convene. Investors and analysts alike are parsing every economic indicator and statement from Fed officials, seeking clues about the central bank’s next move.

The primary concern revolves around the pace of future interest rate hikes. With inflation still a persistent concern, the Fed is under pressure to maintain its tightening policy. However, signs of slowing economic growth could prompt a more cautious approach.

Market participants will be scrutinizing the Fed’s statement for any shifts in language that might indicate a change in strategy. The bond market’s reaction to the meeting’s outcome is expected to be significant, potentially impacting yields across the curve.