US inflation eases, traders lift odds of third rate cut
Michael MacKenzie, Ye Xie and Mark Niquette
Updated
New York | US Treasuries jumped and investors priced in higher expectations that the Federal Reserve will lower interest rates three times in 2026 after a reading of American inflation came in below forecasts.
The consumer price index rose 0.2 per cent in January, the smallest gain since July and restrained by lower energy costs, according to Bureau of Labour Statistics data. Excluding often-volatile food and energy costs, core prices increased by an expected 0.3 per cent from December.