Lower inflation in May may lead to earlier interest rate cuts by the Federal Reserve.

From Yahoo Finance: 2025-06-11 11:03:00

Lower inflation in May may prompt the Federal Reserve to cut interest rates sooner than expected. Inflation rose 2.4% year-over-year, driven by housing costs. Fed officials have held off on rate cuts due to tariff concerns. Markets now predict a 57.1% chance of a rate cut in September, up from 53.5% the day before.

Read more: What May’s CPI Report Means For the Federal Reserve’s Interest Rate Decisions