The Latest: Investors cautious ahead of Fed announcement

WASHINGTON (AP) — The Latest on the Federal Reserve's monetary policy meeting (all times local):

4:50 a.m.

World stock markets are subdued ahead of an expected interest rate increase from the Federal Reserve.

The Fed is widely expected to raise on Wednesday its key interest rate for the third time this year as the U.S. economy strengthens.

Investors appear confident that the economy can withstand a gradual increase in rates. However, they will be keeping a close eye on Fed Chair Janet Yellen's comments during a news conference for signals on how aggressive the Fed might be in raising rates next year. Though Yellen's term as chair ends in February, she will largely be expressing the views within the wider Fed rate-setting committee.