Inflation, Trump
Digest more
The Consumer Price Index rose 2.4 percent in May, from a year earlier, a reading that reflects only the initial impact of President Trump’s tariffs.
9h
Explícame on MSNInflation eases despite tariffs, but stores still raise pricesAlthough May posted more moderate inflation figures than expected, the price hikes seen in stores and specific sectors reveal that the cost of the new tariff measures is already taking hold, and could intensify in the coming months.
Economists and investors for possible effects of tariffs on prices when the Bureau of Labor Statistics release May’s consumer price index on Wednesday.
Kugler's remarks, among the last of public comments from Fed policymakers ahead of their June 17-18 meeting, indicate that she sees inflation as the more pressing worry for the Fed. The central bank is widely expected to leave the policy rate in its current 4.25%-4.50% range for the next couple of meetings.
Annual inflation rose to a 2.4 percent pace in May, suggesting President Donald Trump’s tariffs have yet to drive up the cost of everyday products.
The U.S. Federal Reserve will keep interest rates on hold for at least another couple of months, according to most economists polled by Reuters, as risks linger that inflation may resurge due to President Donald Trump's tariff policies.
The dollar was dragged lower after the US president told reporters he would send letters to trading partners outlining new tariff rates in the next couple of weeks, as the end of the 90-day pause on so-called “reciprocal” levies approaches next month.