Markets were mostly higher on Tuesday
The S&P 500 rose 0.2 percent, boosted by robust housing market data, while European stocks rose 0.9 percent.
"If we continue to keep getting strong economic data it will become hard for the Fed to rationalize not hiking rates," said Erik Wytenus, global investment specialist at JP Morgan Private Bank.
Indeed, Savita Subramanian, equity and quantitative strategist at Bank of America, said on Tuesday: “BofAML interest rate forecasts imply a far more aggressive pace of Fed tightening than is currently priced into the market.”
Subramaniam also noted that “U.S. stocks look expensive versus history on most metrics”, and thinks that the market is ripe for a selloff.