By Kristin Myers, Editor-in-Chief

What's Happening Today

After a rough day in the markets yesterday that saw the S&P 500 slip into bear market territory, down more than 20% from its most recent high, stocks are rising today as the Federal Reserve kicks off its two-day policy meeting for June, with Fed Chair Jerome Powell expected to announce the Fed's decision tomorrow afternoon.

Investors will be watching how aggressive the central bank will be in trying to fight inflation, with many now anticipating a hike of 75 basis points (bp), or three-quarters of a percentage point. After Friday's latest Consumer Price Index (CPI) report showed the annual rate of consumer inflation hitting a new 40-year high, the Fed is under pressure to bring inflation down.

Today, another inflation gauge showed that prices manufacturers pay for materials has jumped 10.8% since last year. The Producer Price Index (PPI) jumped 0.8% in May, accelerating from April's figures when PPI rose 0.4%. Often considered a leading indicator of consumer inflation, the rise in producer prices could signal rising costs ahead for consumers, as producers pass higher prices along to consumers.

A survey by the National Federation of Independent Business confirmed that small businesses are passing on increased costs to consumers. The survey found that 72% of small business owners said in May they are raising average prices to cope with inflation, the same share who said so in March, and the most in the survey's 48-year history. Small business owners' expectations of business conditions over the next six months dropped to a record low, as over a fifth of respondents (28%) pointed to inflation as their number one business problem. Simply put, with the increase in the PPI and small business owners raising prices, inflation may not have reached its peak.

- Kristin

Editors' Picks

Recession Fears Push S&P 500 Into Bear Territory (The Balance)

Fed Likely to Consider 0.75-Percentage-Point Rate Rise This Week (The Wall Street Journal)

Crypto Market Sinks Below $1 Trillion After Latest DeFi Blowup (Bloomberg)

BoFA Survey Signals 'Deeper Investor Misery' as S&P Enters Bear Market (Yahoo Finance)

Inflation Might Be Even Worse Than We All Think (The Balance)

Your Grocery List Ranked by Inflation (The Balance)

Public Servants Get New Guide to Loan Forgiveness (The Balance)

Off the Charts

Grocery bills are relentlessly higher these days, fueling the highest inflation in decades. Here's a look at the biggest price increases last month, according to the latest data from the Bureau of Labor Statistics.