US inflation cooled more than expected to 3.5% in June (down from 4.2% in May), hitting its lowest level since March. Key takeaways: • CPI fell 0.4% month-over-month (expected: -0.1%) • Core CPI flat at 2.6% YoY • Easing energy/gas prices drove the drop • Wages matched inflation at 3.5% YoY, ending a streak of declining real wages With inflation still above the 2% target, markets now price in an 83% chance (CME FedWatch) the Fed holds interest rates steady at the end of July.(Lark Davis)