The U.S. dollar steadied on Wednesday following its biggest decline in more than three weeks overnight, with cooler-than-expected U.S. consumer inflation data bolstering the case for Federal Reserve easing just as global trade tensions cool.

Investors are betting that the Federal Reserve is likely to keep interest rates on hold in the near term following another inflation reading that didn’t make things any easier for the central bank.

Chicago Fed chief Austan Goolsbee called the April inflation report 'comforting' but said he needs to see several more as officials consider rate cuts

Tariffs hadn't raised the cost of living as of March, according to Wednesday's report on the Federal Reserve's preferred measure of inflation.

Live Updates Live Coverage Updates appear automatically as they are published. S&P 500 Upward Revision 10:45 am by Gerelyn Terzo The S&P 500 full-year 2025 target revisions are rolling in. Most recently,

Romanian inflation remained unchanged last month as the gravest political crisis since the collapse of communism pushed the leu to a record low which will likely intensify price pressure and complicate the central bank’s wait-and-see approach to monetary policy in the coming month.

The U.S. Federal Reserve has adopted a wait-and-see stance on the economic fallout from Trump's tariff campaign before cutting interest rates again. Traders currently price in about 50 basis points of rate reductions between now and the end of the year, according to LSEG data, with the next quarter-point cut seen in September.

Because it's based on third-quarter inflation, it's impossible to predict the 2026 COLA with any degree of accuracy. Because of the ongoing tariff back-and-forth, as well as a generally slowing U.S. economy, the inflation rate on the back end of the year is more uncertain than it usually is.