STORY: A key inflation report favored by the Federal Reserve showed that U.S. prices rose moderately in March, in line with economists' expectations.
The Commerce Department's personal consumption expenditures, or PCE, price index, on Friday also showed the annual inflation rate increased 2.7% - above the Federal Reserve's 2% target.
That suggested Fed policymakers will likely be in no rush to cut interest rates.
The central bank began hiking rates in 2022, the same year the pace of inflation hit a high of 9%.
As prices began to drop, those rate hikes were paused - the last one coming in July of 2023.
Now investors are wondering when borrowing costs might start to come down.
Financial markets initially expected the first rate cut to come in March of this year. But that expectation got pushed back to June and then September due to stubbornly sticky inflation data, combined with a strong labor market.
Robust job growth has helped power consumer spending, which Friday's report showed increased by a solid 0.8% last month, matching February's rise.
