According to reports, the US inflation rate fell to 3% in June, which is an encouraging sign for the Federal Reserve. The Federal Reserve is currently discussing how fast to cut interest rates from a 23-year high. The year-on-year increase in the CPI index in June was lower than economists' estimate of 3.1%, compared to 3.3% in May. Meanwhile, the Federal Reserve is looking for further evidence that the pressure on US prices is easing. Although earlier this year the market expected the Fed to cut interest rates as many as 7 times in 2024, the Federal Reserve kept the benchmark interest rate in the range of 5.25-5.5%, which is the highest level since 2001. However, Federal Reserve Chairman Powell told US lawmakers this week that the labor market is showing signs of cooling down. Officials are worried that keeping interest rates too high for too long will squeeze the economy. He added that the decision will be made on a “meeting by meeting” basis.