The core personal consumption expenditures index, which strips away food and energy prices, rose 0.1% for the month and 2.5% for the year.

Traders of futures that settle to the Federal Reserve's policy rate continued to bet on Friday that the U.S. central bank will cut its target for short-term borrowing costs in September, after inflation by the Fed's targeted measure cooled to 2.

A key U.S. inflation gauge slowed last month as President Donald Trump’s tariffs have yet to noticeably push up prices, while American incomes jumped.

Economists at Bank of America and Goldman Sachs forecast inflation will shoot up to more than 3.5% by year’s end.

US stock futures are little changed as investors await new inflation data and next moves from the Trump administration on tariffs.

Investors are winding down a volatile but winning week as President Trump’s trade war continues with China in the crosshairs, Elon Musk officially ends DOGE duties, U.S. Steel, Nippon Steel deal proceeds.

The US Federal Reserve's preferred inflation measure cooled more than expected last month, according to government data published Friday, as President Donald Trump's "liberation day" tariffs on most countries came into effect.

U.S. Federal Reserve policymakers could still cut interest rates twice this year as they projected in March, San Francisco Fed President Mary Daly said on Thursday, but for now rates should remain steady to make sure inflation is on track to reach the central bank's 2% goal.

Federal Reserve officials were worried about the possibility that higher inflation resulting from the White House trade policy might lead to lasting higher inflation, even as central bank staff were noting that recession odds were high,