Investors widely expect that Fed officials will cut interest rates at the conclusion of their policy meeting next Tuesday and Wednesday. They have been betting that officials will most likely lower borrowing costs by a quarter of a percentage point from their current 5.33 percent, but a larger half-point move is also seen as possible.

The post-pandemic spike in U.S. inflation eased further last month as year-over-year price increases reached a three-year low, clearing the way for the Federal Reserve to cut interest rates next week