Fueled by a generous tailwind from consumer spending, the growth supports the Fed’s view that the economy is strong—and interest rates do not need to be lowered rapidly.

While the easing is welcome after months of elevated readings, a series of subdued readings would be needed to convince Fed officials that they are again making adequate progress on inflation.

However, high borrowing costs—which have kept the sector in a downturn for the past two years—may stay elevated for some time.

The 3.6% annualized rate of growth in the core CPI underscores the slow and frustrating nature of the battle against inflation.

Bringing inflation down to target levels is proving challenging for central banks around the world, but most are slowly reducing interest rates.

Fear that wage gains will stoke inflation may lead the Fed to tread more carefully in its interest rate decision this afternoon.

This is the slowest pace of hiring in the United States since 2020, but the unemployment rate remained low, as numbers were distorted by hurricanes and a major strike at Boeing.

This is the strongest signal yet that the Federal Reserve will be able to cut interest rates soon.