US consumer prices rebounded moderately in April, with headline inflation increasing 0.2% last month after dipping 0.1% in March.

Economists polled by Reuters had forecast that the consumer price index (CPI) would rise by 0.3%. The CPI climbed 2.3% in the 12 months through April, after advancing 2.4% in the 12-month period until March.

"In terms of inflation expectations and monetary policy, we're very much in the same place that we were before the report came out," said Jordan Rizzuto, Chief Investment Officer at Gamma Road Capital Partners.

"We expect the Fed to continue to be in a wait-and-see-mode until we see some further materialization of pricing pressures that may come from the new trade policies," Rizzuto said.

Traders leaned into bets that the Fed would not start lowering borrowing costs until September, but still expected at least two 25-basis-point cuts by the end of the year. A number of US Federal Reserve officials are slated to speak this week, including Chair Jerome Powell on Thursday.

--Reuters--