Cooler inflation last month leaves the door open for the Federal Reserve to resume cutting interest rates by mid-year, but the central bank remains worried that U.S. tariff hikes could rekindle price pressures,

Traders in the federal-funds futures market are expecting the Federal Reserve will hold its benchmark interest rate steady until June, when they anticipate a potential rate cut. Fed-funds futures pointed to a 99% probability of the Fed keeping its policy rate at the current level of 4.