Fed seen resuming interest-rate cuts in June as inflation heads decrease

(Reuters) – Cooler inflation may permit Federal Reserve policymakers to renew interest-rate cuts later this yr, with merchants betting Tuesday on three quarter-point reductions within the coverage price by the tip of 2025, beginning in June.

Client costs rose 2.8% in February from a yr earlier, a authorities report confirmed on Tuesday, lower than the two.9% that economists anticipated and down from 3% in January. U.S. central bankers, who goal 2% inflation, meet subsequent week and are practically universally anticipated to depart the coverage price in its present 4.25%-4.50% vary.

(Reporting by Ann Saphir; Modifying by Chizu Nomiyama)