The Federal Reserve is seen restarting interest-rate cuts in June, traders bet on Tuesday, as government data showed U.S. producer prices were unexpectedly flat last month and weekly jobless claims fell.

Expectations for the next interest-rate reduction are being brought forward after the stock market’s big selloff at the start of the week. Investors had penciled in June as the most likely moment for

The Fed is not expected to cut interest rates at the conclusion of its next meeting on March 19, but there may be clues to the timing of the next cut.

Barclays now expects the U.S. Federal Reserve to deliver two quarter-point interest rate cuts in June and September, the Wall Street brokerage said on Thursday, citing softer labor market conditions amid tariff uncertainty.

Lower rates can stimulate the economy, and Cramer said the data in the CPI report gives the Fed room to cut, which would benefit the market as a whole. The central bank may actually have to cut, he continued, because tariff increases could lead consumers to spend less, which in turn means many retailers will miss their estimates.

Traders are actively assessing the likelihood of Federal Reserve interest rate cuts for the year. While the Fed will likely remain idle this month, more long-term forecasts indicate a 25% chance of two rate cuts,