Bull market faces Fed stress and rate hike uncertainty.

Traders expect the Federal Reserve to pause interest rate hikes at this week's Federal Open Market Committee meeting, but former Fed vice chair Roger Ferguson warns that a longer-lasting shift in monetary policy is not certain. Concerns about inflation and a tight labor market may lead to more rate hikes later this year. While some strategists believe a new bull market is underway, others question the narrow market leadership and warn of a potential recession. The Fed's decision will be influenced by the May consumer price index report and ongoing labor market data.