"Market Outlook: Fed's Rate Decision and Inflation Concerns Impact Stocks"

Economists predict a 4% annual increase in inflation for May, down from April's 4.9%. Gasoline prices have helped bring down inflation, but groceries continue to see rapid increases. The Federal Reserve hopes to cool overall inflation to 2% and will announce its latest interest rate policy on Wednesday. The Fed tends to discount changes in food and gas prices, instead focusing on price increases in services like travel. Ongoing increases in wages are causing inflation to remain elevated, particularly in lower-wage industries.