In June, the Personal Consumption Expenditures Index rose 3.0% year over year, down from 3.8% in May.

Core PCE inflation rose 4.1%, below the projected 4.2%.

Federal Reserve Chair Jerome Powell said core PCE inflation is “well above our longer-run goal of 2%.”

The Fed boosted interest rates to 5.25%-5.50% to curb inflation.

Wages and salaries rose 4.6% in April-June, causing inflation to rise.

Headline inflation was 3%, and Powell said the drop could help the Central Bank fight price stability.

Economic reports influenced Fed-linked futures, with investors expecting an 18% rate hike in September.

Powell didn’t hint towards a September Fed rate hike, but said the evidence will inform the decision.