Here’s another rewritten version with a more dynamic financial-news tone:

The latest U.S. inflation data could determine whether the Federal Reserve moves forward with an interest-rate increase at its late-July meeting.

June CPI figures came in well below expectations, cooling recent market concerns that the Fed could soon resume rate hikes.

The Consumer Price Index fell 0.4% in June, significantly better than economists’ forecast for a 0.1% decline and a sharp reversal from May’s 0.5% monthly increase.

On a year-over-year basis, headline CPI climbed 3.5%, missing expectations for a 3.8% rise and slowing from May’s 4.2% annual increase.

Core CPI, which strips out volatile food and energy categories, was unchanged during the month, compared with forecasts for a 0.2% increase and matching May’s gain. Annual core inflation eased to 2.6%, below projections of 2.8% and May’s 2.9% reading.

The softer inflation report boosted risk assets. Bitcoin extended its rally after the release, moving up to around $63,400 and gaining roughly 2% over the previous 24 hours. U.S. equity futures also climbed, with Nasdaq 100 futures advancing 1.25%.

Treasury markets reacted with a sharp decline in yields as traders scaled back expectations for tighter Fed policy. The two-year Treasury yield dropped seven basis points to 4.19%, while the 10-year yield slipped five basis points to 4.56%.

The report was especially important after Fed Governor Chris Waller indicated that he would support a rate increase if core inflation failed to improve. Prior to the CPI release, expectations for a July hike had risen rapidly, with CME FedWatch showing the probability jumping to 42% from 8% a month earlier.

Investors will now turn their attention to Fed Chair Kevin Warsh’s testimony before Congress for further clues on the central bank’s inflation outlook and the likely direction of interest rates.