Slower inflation paves way for Fed to resume rate cuts in June

Cooler inflation last month leaves the door open for the Federal Reserve to resume cutting interest rates by mid-year, but the central bank remains worried that U.S. tariff hikes could rekindle price pressures, trigger an economic slowdown, or both. Consumer prices rose 2.8% in February from a year earlier, a government report showed on Wednesday, marking progress compared with the 3% reading in January. As long as the labor market stays strong, continued easing on the inflation front would allow the Fed to adjust interest-rates slowly downward in what analysts and some Fed policymakers have referred to as "good news"…