Stocks Rise After May CPI Shows Inflation is Easing

The latest inflation data has all but guaranteed the Fed will hold interest rates steady for the time being.

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Stocks closed higher Tuesday after the latest consumer price index (CPI) report raised expectations that the Federal Reserve will pause its run of rate hikes tomorrow when it concludes its June meeting. 

However, while the data showed that inflation is easing, some "sticky" readings increased the probability that another rate hike could come at the next Fed meeting in July.  

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Karee Venema
Senior Investing Editor,

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at Schaeffer's Investment Research. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.