US Inflation Cools in May, Fed Decision Looms

The Consumer Price Index (CPI) for May is expected to show a slowdown in inflation, with headline inflation rising 0.2% over last month and 4.1% over the prior year, and core prices climbing 0.4% over the prior month and 5.2% over last year. The Federal Reserve has been raising interest rates to combat inflation, but risks sending the economy into a recession by hiking rates too high too fast. The Fed is expected to pause its interest rate hikes at its meeting this week, but may make clear "another hike at its July 26 meeting remains a distinct possibility."