The central bank’s recent infusion of financial-market brawn includes Beth Hammack, who worked for three decades at Goldman Sachs.

The Consumer Price Index rose 2.9 percent from a year earlier, but a measure of underlying inflation was more encouraging.

U.S. inflation likely worsened last month on the back of higher prices for gas, eggs, and used cars, a trend that could make it less likely that the Federal Reserve will cut its key interest rate much this year.

Annual inflation ticked up for a third straight month in December as food, energy costs rose, CPI report showed. But underlying price measure eased.

The drop in yields occurred as traders resumed betting on another Fed rate cut by July. Traders ignored the strong December employment data released Friday, which sparked a surge toward the highest levels in months as it sowed doubts that policymakers would cut rates at all this year.

Federal Reserve officials at their meeting Dec. 17-18 expected to dial back the pace of interest rate cuts this year in the face of persistently elevated inflation and the threat of widespread tariffs and other potential policy changes.

President-elect Donald Trump is set to inherit inflation at a 5-month high. According to the Labor Department, consumer prices rose 2.9% year-over-year and 0.4% month-over-month in December, the largest gains in overall prices in months.