European markets were lower on Monday as investors focused on the next U.S. Federal Reserve meeting. The two-day meeting will conclude with the central bank's Federal Open Market Committee announcing its latest interest rate decision.

This week, Federal Reserve officials will debate how much further to raise interest rates, based on their expectations for how much the economy will slow down this year.

The Federal Reserve has expressed concerns that prices, which have begun to decline, could reaccelerate due to tight labor markets. The question is whether to give more consideration to prices and wages, or to how the economy is operating in comparison to its normal capacity.

The labor market improved across the U.S. last year, with every state adding jobs. However, the pace of gains varied widely.

The stock market has changed its outlook for 2023.