Inflation in the U.S. appears to be cooling. The June consumer price index (CPI)  dipped 0.1% month-over-month, the first fall since the onset of COVID-19. On an annual rate, inflation is running at 3%, down from 3.3% in May. The Federal Open Market Committee claims that an annual inflation rate of 2% over the long term is consistent with a healthy economy. The news triggered talk of a rate cut when the Federal Reserve meets in September.

The Fed uses interest rates to help control the pace of economic growth. The current federal funds rate is the highest since the financial crisis of 2008 at 5.5%.