Yahoo TV

The Federal Reserve is expected to pause its rate hike campaign at its June FOMC meeting this Wednesday. Yahoo Finance spoke to economists, analysts, and strategists about the rate decision and what it means for investors.

Yahoo Finance Fed reporter Jennifer Schonberger discussed the impact of the May CPI report on the Fed's June rate decision. Schonberger said, "Investors largely expect the Federal Reserve to hit the pause button at their policy decision on Wednesday, but tomorrow's Consumer Price Index could prove to be a last-minute game changer."

Kevin Gordon, Senior Investment Strategist at Charles Schwab, is keeping an eye on wage data ahead of the Fed decision. Gordon said, "I think more important would be language around what it means for July ... and some of the wage data. That to me is going to be more interesting moving forward."

Richard de Chazal, William Blair Macro Analyst, broke down the potential market reaction. Regarding the Fed rate decision, de Chazal said, "There's about a 25 percent probability that the Fed raises rates this week, but if you look out to July that's increased to about 53 percent."

Yahoo Finance reporter Josh Schafer broke down what investors should be watching this week. Schafer said, "Right now people have priced in for the Fed to pause, but if CPI comes in hotter than expected, if inflation remains stickier than people think it will, then that maybe shifts the Fed at the last moment."

Paul Donovan, UBS Global Wealth Management Chief Economist, discussed inflation and its impact on the upcoming Fed decision. Donovan said, "The third wave of inflation, the one we're getting now, is this unusual profit-led inflation story."

Huw Roberts, Quant Insight's Head of Analytics, discussed the recent market price action centered around a potential Fed pause. Roberts said, "How does the market get convinced that a pause does not equal a dovish pivot? Well one way to do that would be by the dot plot, and moving those plots higher."

Video highlights:

00:00:03 - Yahoo Finance Fed reporter Jennifer Schonberger

00:00:18 - Senior Investment Strategist at Charles Schwab Kevin Gordon

00:00:40 - William Blair Macro Analyst Richard de Chazal

00:00:53 - Yahoo Finance reporter Josh Schafer

00:01:07 - UBS Global Wealth Management Chief Economist Paul Donovan

00:01:30 - Quant Insight Head of Analytics Huw Roberts