Slowing U.S. inflation may have opened the door for the Federal Reserve to temper the pace of coming interest rate hikes, but policymakers left no doubt they will continue to tighten monetary policy until price pressures are fully broken.

Oil prices drifted lower on Thursday after gaining more than $1 in the previous session, as concerns over supply disruptions eased and markets looked for evidence of improving fuel demand.

The dollar made up some losses on Thursday after a steep drop the previous day on softer than expected inflation data out of the U.S.

U.S. small business confidence edged up in July as fuel prices eased and job openings became marginally easier to fill, but inflation worries intensified, a survey showed on Tuesday.

U.S. worker productivity in the second quarter fell at its steepest pace on an annual basis since 1948 when the Labor Department began tracking it, while growth in unit labor costs accelerated, suggesting strong wage pressures will continue to help keep inflation elevated.

Chinese consumer and producer price indicators for July came in below expectations on Wednesday, indicating that the world’s second-largest economy was still grappling with the impact of COVID-related lockdown measures.