Stocks closed lower on Wall Street ahead of a key decision on interest rates by the Federal Reserve.

The S&P 500 fell 1.1% Tuesday. The Nasdaq composite and the Dow Jones Industrial Average also lost ground. Treasury yields were mostly higher.

Traders are waiting to see how high the Fed will raise interest rates at its meeting that ends Wednesday.

The Fed has been raising the cost of borrowing money in hopes of slowing down the hottest inflation in four decades. Traders worry the Fed may overshoot its goal and slow down the economy so much it causes a recession.