The Federal Reserve's favored measure of inflation grew more slowly last month, but remained above the central bank's 2% target.

Inflation has exceeded the Fed’s 2% target since early 2021 when the U.S. economy overheated as it roared back from COVID-19 lockdowns.

U.S. inflation cooled last month as the cost of gas, clothes, and used cars fell, providing some relief to consumers. 

Fed policymakers “have no tolerance for persistently elevated inflation,” Kevin Warsh said in written remarks.

The Federal Reserve kept its key rate unchanged Wednesday yet half the central bank’s policymakers said they could support a rate hike later this year.

Weekly jobless aid applications have stabilized in a range mostly between 200,000 and 250,000 since the economy emerged from the pandemic.

Lower interest rates can boost the economy and hiring, but also tend to fuel inflation.

The Federal Reserve is leaving its benchmark interest rate unchanged for the third straight meeting.