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FILE - This Wednesday, Aug. 2, 2017, file photo shows the Federal Reserve Building on Constitution Avenue in Washington. On the day when Janet Yellen will hold her final news conference as Federal Reserve chair, the Fed has left little doubt what it plans to do Wednesday, Dec. 13, 2017: Raise its benchmark interest rate for the third time this year. less
FILE - This Wednesday, Aug. 2, 2017, file photo shows the Federal Reserve Building on Constitution Avenue in Washington. On the day when Janet Yellen will hold her final news conference as Federal Reserve ... more
Photo: Pablo Martinez Monsivais, AP
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FILE - In this Wednesday, Nov. 29, 2017, file photo, Federal Reserve Chair Janet Yellen attends a hearing of the Federal Reserve Board Joint Economic Committee, on Capitol Hill in Washington. Investors may not be sure about what the central bank might have in store for 2018, and they’ll look to Yellen’s final news conference as Fed chair Wednesday, Dec. 13, 2017, for clues. less
FILE - In this Wednesday, Nov. 29, 2017, file photo, Federal Reserve Chair Janet Yellen attends a hearing of the Federal Reserve Board Joint Economic Committee, on Capitol Hill in Washington. Investors may not ... more
Photo: Jacquelyn Martin, AP

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.

In morning trading in Europe, Germany's DAX index and Britain's FTSE 100 were both down 0.1 percent, while Japan's Nikkei 225 shed 0.5 percent. Wall Street was expected to open flat, with futures for the Dow and S&P 500 indexes trading flat.

The dollar was down 0.1 percent against the yen, at 113.38 yen, and flat against the euro at $1.1744.