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Sliding U.S. Inflation May Provoke Fed Rate Cut Later This Year

  • Fed’s Evans sees 1.5% inflation feeding rate-cut discussion
  • JPMorgan says core inflation may fall to that level next month
The U.S. Federal Reserve building stands in Washington D.C.

The U.S. Federal Reserve building stands in Washington D.C.

Photographer: Brendan Smialowski/Bloomberg

U.S. inflation is sliding again, and this time Federal Reserve officials may feel compelled to respond.

After a gauge of price pressures central bankers watch closely finally rose above their 2 percent target last summer -- marking the first time north of it since 2012 -- it moderated to 1.8 percent in January, and some forecasters see it heading lower still throughout the first half of the year. That may be reflected in two Commerce Department reports slated to be published in the coming days.