Markets Tighten Ahead of Fed

While Federal Reserve officials have been wrestling with whether to tighten monetary policy in recent weeks, the financial markets may have already done much of the work for them. Stock and bond prices have slumped and the dollar has strengthened. Since Labor Day, the Dow Jones Industrial Average has fallen 1.95%, while the yield on the 10-year U.S. Treasury note has climbed 0.08 percentage point to 1.698% and the WSJ Dollar Index has risen 0.95%. On Monday, the Dow dropped 3.63 points to 18120.17. Please click here to continue reading the article.