US Inflation Slowed in May, Boosting Likelihood of Interest-Rate Cuts

Reported 7 months ago

The US inflation rate eased slightly to 3.3% in May, lower than expected, prompting speculations of potential interest-rate cuts by the Federal Reserve later this year. The consumer-price index rose 3.3% annually in May, down from 3.4% in April, with core prices increasing by 0.2%, the mildest rise since July. The report led to a surge in stock futures and a decrease in Treasury yields, with futures markets now predicting a 70% chance of at least two rate cuts by the end of the year. This better-than-expected report keeps alive the possibility of rate cuts at the Fed's September meeting.

Source: YAHOO

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