Fed Policymakers Signal Rate-hike Slowdown Coming, But No Easing

Federal Reserve policymakers on Thursday expressed relief that price pressures were easing, paving the way for a possible slowdown in interest rate hikes, but they signaled the U.S. central bank's target rate was still likely to rise above 5% and stay there for some time despite market bets to the contrary.

In fresh evidence that the Fed's aggressive policy tightening last year is having the desired effect, U.S. consumer prices fell in December in the first month-to-month decline in more than 2-1/2 years, and underlying inflation slowed, government data showed...