Key question before US reveals latest consumer prices: Is inflation cooling enough for the Fed?

An eagerly awaited report Wednesday on consumer prices will show whether inflation is still easing, a trend the Federal Reserve will weigh in deciding when and by how much — or even whether — to cut interest rates this year. The March inflation figures are expected to show an ever-so-slight cooling of inflation, which might keep the Fed on track to cut its benchmark interest rate three times this year. But with inflation data having come in higher than expected in January and February, a third elevated reading could forestall some or all of those rate reductions. The government’s inflation reports have assumed an unusually high profile this year in both financial markets and the presidential race.