CPI has dropped to 3.5%. Rate hike expectations were slashed from 42% to 17%—the plot twist is happening a bit too fast.

CoinMarketNews reports that the latest Consumer Price Index (CPI) shows U.S. inflation has fallen to 3.5%, below most expectations. In June, CPI fell 0.4% month over month, bringing annual inflation to 3.5%. Economists surveyed by Dow Jones had predicted the prior month’s decline would be 0.2% and forecast inflation at 3.8%. In remarks on Tuesday, Federal Reserve Chair Kevin Wausch reiterated his resolve to combat inflation, saying that inflation is an “unfair burden” on the American people and businesses. He said that “institutional change” in policy is necessary. With inflation easing, market expectations for the Fed’s rate hikes this year have also declined: the probability of a rate hike at the July meeting fell from 42% the day before to 17%.