"US Inflation Moderates, Easing Pressure on Fed to Raise Rates"

The latest data from the Bureau of Labor Statistics shows that prices rose at their slowest annual pace in two years in April, with headline inflation rising 0.4% over last month and 4.9% over the prior year. This has led to Wall Street betting that the Federal Reserve will pause the most aggressive interest rate hike cycle in four decades at its next meeting in June, with markets now pricing a 97% chance of a rate hike pause. However, core inflation, which strips out food and energy prices, remained sticky last month, climbing 0.4% over the prior month and 5.5% over last year.