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Could the market have rallied itself into a rate hike?

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Biggest reason the Fed won't hike: McDonald

The stock market selloff was seen as one reason for the Fed to hold off on a rate hike, but the market is rallying back and some say any more gains could be a catalyst for the Fed to hike.

The Fed begins its two-day meeting Wednesday and is expected to issue a statement Thursday afternoon that will reveal whether it has decided to raise rates for the first time in nine years, moving the Fed funds rate off of near-zero for the first time in nearly seven years.

Wall Street's economists are split on what the Fed will do, while the markets are not pricing in a hike for September, with just 28 percent odds reflected in fed funds futures. But the Treasury market sold off Tuesday, with a sharp jump in the two-year yield, sparking speculation that investors were positioning for a rate hike.

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