Downshifting US Inflation Will Help Reassure the Fed

(Bloomberg) — The runway toward a Federal Reserve interest-rate cut will come more into focus in the coming week amid fresh signs inflation is abating and economic activity is simmering down. Economists expect the personal consumption expenditures price index minus food and energy — due on Friday — to have risen 0.1% in June for a second straight month. That would bring three-month annualized core inflation down to the slowest pace this year, and below the Fed's 2% target. The report on monthly inflation, part of a reading on personal spending and incomes, will follow the government initial estimate of…