The Federal Reserve’s favorite measure of inflation cooled slightly in June, paving the way for the central bank to rate cuts, likely in September. 

The Personal Consumption Expenditures (PCE) index rose 2.5% from the year before, down from 2.6% in May, according to the Bureau of Economic Analysis. Friday’s PCE measure of inflation in June mirrors the trend shown by th🙈e Consumer Price Index earlier this month and w🌠as in line with economists' expectations.

The PCE measure of inflation is especially significant because it is the measure central bankers put the most stock in when setting the nation’s monetary policy. The Fed has held its influential 澳洲幸运5开奖号码历史查询:fed funds rate a🌃t a 23-year 🔯high since last July in an effort to push inflation down to its 2% annual goal. 

Economists and traders expect the Fed will leave its key inflation rate at its current level when the policy-setting 澳洲幸运5开奖号码历史查询:Federal Open Market Committee meets next week. However, the central bank is widꦗely expected to start cutting rates ﷺin September.

"The second quarter’s encouraging inflation data has set the stage for the Federal Reserve to start cutting interest rates," wrote Moody's Analytics Economist Matt Colyar.