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.

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.

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.

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,

Cooler inflation could allow Federal Reserve policymakers to resume interest-rate cuts later this year, with traders betting on three quarter-point reductions in the policy rate by the end of 2025, starting in June.

Softer U.S. labor market conditions against the backdrop of trade-policy uncertainty have prompted Barclays to raise its expectations to two rate cuts by the Federal Reserve for the year from one.

The Federal Reserve will keep interest rates steady through the first half of the year, before delivering two reductions beginning in September, according to economists surveyed by Bloomberg News.

Barclays has lowered its expectations; now, it thinks the Federal Reserve will cut interest rates twice this year instead of once. This is due to unclear trade policy and the weakening U.S. job market.