Traders on Thursday bet the U.S. Federal Reserve will resume cutting interest rates in June and probably deliver a full percentage point of reductions to its policy rate by the end of the year. after data showed inflation last month was softer than economists had expected.

When paired with a weaker economy, cheaper rates could do little to make it an easier time for Americans to borrow money, economists and financial experts interviewed by Bankrate say. They also might not fix the tariff-led shock that’s been roiling business, consumer and investor confidence.

Data from the CME Group on Friday showed raised odds the federal funds rate will fall to 3.00% to 3.25%, down from 4.25% to 4.50% where it is currently.

Federal Reserve policymakers worry U.S. President Donald Trump's trade policy could deal a blow to economic growth, but are signaling they won't be quick to ride to the rescue with interest rate cuts because they expect increased tariffs to boost inflation.

Traders on Wednesday sharply trimmed their bets on Federal Reserve interest-rate cuts after U.S. President Donald Trump said he was further increasing tariffs on China but pausing for 90 days the big tariff increases he had announced last week for most other countries.

President Donald Trump has made it abundantly clear he wants the Federal Reserve to cut interest rates. Trump's tariffs initially led to lower U.S. Treasury yields. Federal Reserve Chair Jerome Powell has largely taken a wait-and-see approach so far.