While the consumer price index is more commonly known, the Fed relies heavily on the PCE for deciding its stance on monetary policy. At the moment, the Fed is keeping interest rates high – and borrowing costs for consumers elevated – as it wants to see more data on how President Donald Trump’s import tariffs are affecting inflation.

The measure of inflation watched by the Federal Reserve ticked slightly higher in May, but the numbers didn't show a big upswing in prices caused by President Trump's tariffs. Prices rose by 2.3% over the 12 months through May,

Federal Reserve Bank of Minneapolis President Neel Kashkari said he sees two interest-rate cuts as likely this year — with the first potentially in September — but warned that tariffs could have a delayed impact on inflation and policymakers should remain flexible.

The Federal Reserve chair is one of 12 voters on the rate-setting committee. To what extent can the chair call the shots?

The Polymarket prediction site identifies former Fed Governor Kevin Warsh, Fed Governor Christopher Waller and National Economic Council Director Kevin Hassett as the leading candidates to replace Powell.

The dollar weakened to a three-year low after a report that Donald Trump was considering nominating the next Federal Reserve chair early. The US dollar fell 0.3 per cent against a basket of key trading partners’ currencies on Thursday morning in Asia,