US Inflation lower than estimates

US inflation dropped to 3.3% in May, slightly below economists' expectations. This led investors to anticipate earlier interest rate cuts, with 2 quarter-point cuts forecast by the end of the year, which boosted markets. Traders now see an 84% chance of a rate cut by the Federal Reserve (Fed) before the presidential election, up from 60%. Core inflation, excluding food and energy, was 3.4%, also below expectations. The Fed is expected to keep rates at 5.25-5.5% when they meet later today.