The Federal Reserve is likely to resume cutting interest rates in June and could reduce short-term borrowing costs again in September.

Traders of futures contracts that settle to the Federal Reserve's policy rate maintained bets on Friday that the U.S. central bank will restart cuts to short-term borrowing rates in June after data showed inflation rose in line with expectations in January.

The personal consumption expenditures (PCE) index, the Federal Reserve’s preferred gauge of inflation, fell marginally in January, easing concerns that the Trump administration’s tariff policy might upend the central bank’s efforts to control price rises.

New data may point to emerging tension between the U.S. Federal Reserve's dual inflation and employment goals, as price pressures remained sticky in January while consumer spending slowed more than expected.