US Stock Market: Fed officials welcome softer US inflation, seek more evidence before policy shift

US Federal Reserve officials, including Chair Kevin Warsh and Chicago Fed President Austan Goolsbee, welcomed the softer June CPI print of 3.5% from 4.2% in May but cautioned that one month's data is insufficient to confirm a sustainable easing in inflation. Financial markets have trimmed rate hike expectations, with about a 15% probability of a hike at the July 28-29 meeting and around 65% odds for September. Focus now shifts to Wednesday's Producer Price Index data for further clues on inflation trajectory.