This is CBS Eye on the World.

Here's John Batchler.

The American economy, the global economy.

I welcome Elizabeth Peek, Column at the Hill, Column at Fox News, much on Fox Business.

The headline in the Wall Street Journal is promising.

Inflation ease to 4% in May, still well above Fed Target, core prices remained elevated.

Liz, a very good evening to you.

This is better than expected, narrowly, but in any event the direction is all.

The Federal Reserve's mission, we're told, is to return us to 2% annual inflation.

4% is clearly not there, but it's way better than it was a year ago at 9% plus.

And the Federal Reserve is meeting today.

And on Wednesday we'll have a statement from Jerome Powell about the vote of the governors.

At this point, do you expect the Fed conventional wisdom to pause in June and pick up the gavel

again in July?

Good evening to you.

Good evening.

Yes, I think that's the most likely outcome partly because probably it's warranted, John.

We've had a year of incredible rate increases, most aggressive since the 1940s, and also

coincident with that, substantial shrinking of the Fed's balance sheet.

And I think the Fed wants to see how that is impact in the economy.

I mean, we know the economy is slowed, but it's not in recession.

The question is, with this year lag that everyone attributes monetary policy to, is there

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