Moderate inflation, consumer spending supports Fed cutting interest rates
Moderate inflation, consumer spending supports Fed cutting interest rates

U.S. consumer spending increased moderately and prices rose only slightly in May.

According to Reuters, that points to slowing economic growth and benign inflation pressures, which could give the Federal Reserve ammunition to cut interest rates next month.

The US Commerce Department's report was released Friday, coming just a week after the Fed signaled it could ease monetary policy as early as July.