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NEW YORK. — The Dow Jones industrial average hit a record high at the open before holding just below the flat-line. The S&P 500 slipped 0,15 percent, with energy sliding 2 percent to lead decliners. The Nasdaq composite declined marginally.

The Fed is largely expected to raise interest rates by 25 basis points, but investors will likely key on what the central bank says about U.S. inflationary pressures. “It’ll be interesting to see how they address inflationary pressures receding,” said Quincy Krosby, chief market strategist at Prudential Financial. “Inflationary expectations, if you look at the surveys, are going lower.”

Inflation is an important metric closely followed by the Fed and, unlike other data, it has lagged the central bank’s target. The Fed’s preferred inflation measure, the PCE deflator, came in at a weaker 1,5 percent, well below the Fed’s 2 percent inflation target. “We’ve got this deflationary backdrop and because the Fed is paying so much attention to the Phillips curve, they may not be paying so much attention to other factors in the economy,” said Gary Cloud, fixed income portfolio manager of the Hennessy Equity and Income Fund.

The latest consumer price index reading, released Wednesday, fell 0,1 percent. Economists expected CPI to rise 0,2 percent. “I’m assuming their statement will be upbeat, but I’m wondering what language they will use to describe the inflation miss,” said Kathy Jones, chief fixed income strategist at Charles Schwab. “On the surface, you look at it and say: ‘Why are you raising rates?’”

Wall Street will also look for clarity on how the Fed plans to unwind its $4,5 trillion balance sheet. U.S. Treasury spiked Wednesday, with the benchmark 10-year yield sliding to 2,105 percent; it traded near 2,2 percent earlier in the session.

Gold futures also spiked higher Wednesday after the economic data was released. A shooting in Virginia added to fears, sending investors into the safe haven trade.

As of 11:10 a.m. ET, gold futures for August delivery traded 0.81 percent higher at $1,278.90 per ounce. The Dow Jones industrial average fell 6 points, or 0,03 percent, to 21,321, with Chevron leading decliners and Travellers the top advancer. The S&P 500 declined 3 points, or 0,13 percent, to 2,437, with energy leading six sectors lower and utilities outperforming.

The Nasdaq traded 2 points lower, or 0,03 percent, to trade at 6,218. Decliners were a step ahead of advancers at the New York Stock Exchange, with an exchange volume of 221 million and a composite volume of 1 billion in late-morning trade.

The CBOE Volatility Index, widely considered the best gauge of fear in the market, traded near 10,8. — CNBC.