Cooling inflation seen limiting Fed rate hikes

(UPDATED) WASHINGTON, D.C.: Slowing inflation and a cooling property sector are fueling expectations that the US central bank can adopt a smaller interest rate hike this week, as policymakers assess current efforts to rein in prices.

As consumer inflation rocketed to decades-high levels last year, the Federal Reserve (Fed) raised rates seven times in an aggressive campaign to cool the world's biggest economy and lower costs.