May inflation in U.S. drops to 4.0% ahead of Fed decision.

US inflation eased to 4.0% in May, down from 4.9% in April, potentially strengthening the case for the Federal Reserve to pause its tightening campaign. The reading is the slowest since early 2021 but still double the Fed's 2% target. Core prices rose in line with estimates. The CPI print is expected to play a pivotal role in the Fed's decision-making process as it begins a crucial two-day meeting today. There is an 80% chance that the Fed will keep the benchmark rate steady, while the probability of a 25 basis point increase stands at just under 20%.