Inflation pressures continued to moderate in January, which may give the Federal Reserve reason to lower interest rates again later this year. The personal consumption expenditures, or PCE, price index,

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