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 the Consume✃r Price Index earlier this month and was in line with eꩵco🐲nomists' 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官方开奖结果体彩网:fed funds rate at a 23-yea༺r 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官方开奖结果体彩网:Federal Open Market Committee meets next week. However, the central bank is widely expected to start cutting 🙈rates in 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.