US Sep NAHB housing market index and Jul business inventories (m/m) due in 10 minutes.

The Jerusalem Post cited a diplomatic source saying the US Secret Service employed unusual security measures while preparing for Prime Minister Netanyahu's trip to the UN General Assembly in New York. The source said Netanyahu will land at Newark Liberty International Airport in New Jersey—closer to Manhattan than his plane's usual arrival at JFK. The source denied the decision was related to New York's mayor or concerns about provocations, saying it arose from talks with airport authorities over aircraft parking and security; a preparatory delegation from the Prime Minister's office and his security detail arrived Tuesday night to finalize arrangements.

Felipe Villarroel at TwentyFour Asset Management says the Fed faces a difficult trade-off: inflation remains above target and recent Middle East tensions and higher oil prices add upside risk, while the US economy remains resilient. Markets price a 25bp hike Wednesday; TwentyFour sees that as the most likely outcome. Villarroel says the speed at which inflation returns to target matters more than its current level because a rapid decline is needed to prevent inflation expectations from becoming entrenched. He adds recent comments by Fed chair Kevin Warsh show a strong focus on restoring the Fed's anti-inflation credibility, but this meeting will be the first to show how that concern is reflected in policy.