Fed Expected to Hold Off on Interest Rate Hike Amidst Concerns Over Productivity and Market Response.

The Federal Reserve is expected to skip an interest rate hike this week, marking the end of a 15-month campaign to control inflation. Although inflation remains twice the Fed's preferred target rate of 2%, the slowdown gives officials reason to pause. Wall Street is focused on Fed Chair Jerome Powell's press conference for clues about future rate hikes. Economists are divided over whether the Fed will resume rate hikes over the summer or whether the current range of 5% to 5.25% represents the peak. The labor market remains tight, with employers adding 339,000 jobs in May, even in the face of higher borrowing costs, chronic inflation, and declining economic growth.