U.S. inflation ticked higher in December, data indicated Wednesday, but core price price pressures eased, potentially sparking a relief rally in stocks tied to renewed bets on Federal Reserve interest rate cuts.

Tariffs are a wild-card for inflation this year, but it is too soon to say what any changes will mean for the Federal Reserve, said central-bank newcomer Beth Hammack. In an interview, the Cleveland F

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

The Federal Reserve has now battled high inflation for nearly four years. Economists point to the Federal Reserve's rate cuts, rising oil prices, consumer psychology, and potential tariffs as factors holding back inflation's progress.

The U.S. Federal Reserve will hold interest rates steady on Jan. 29 and resume cutting in March, according to a slim majority of economists polled by Reuters, as policymakers digest an expected barrage of new economic policies from Washington.

Federal Reserve Bank of Cleveland President Beth Hammack said in an interview published in the Wall Street Journal on Friday that inflation remained a problem.

Investors initially expected multiple rate cuts in 2024, but now anticipate at most one, reflecting the Fed's ongoing inflation concerns. Read what investors need to know.

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.

The Federal Reserve's premature victory lap over inflation reveals a worrisome misunderstanding of the predicament we still find ourselves in.

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.

The effects of potential changes in trade and immigration policy suggested” restoring 2% inflation “could take longer than previously anticipated,” according to the Fed minutes released Wednesday.