May CPI Shows Tariffs Have Yet to Impact Inflation
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U.S. CPI readings for May were once again lighter than forecasted, with U.S. headline CPI up +0.1% month-over-month (MoM) and up +2.4% year-over-year (YoY) versus consensus expectations.
BENGALURU (Reuters) -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.
Vice President Vance ripped the Federal Reserve and cited President Trump’s criticism of the central bank after prices rose at a slower than expected rate in May. In a Wednesday social media
Despite warnings about US President Donald Trump’s tariffs, tariffs have had a muted effect so far as inflation has remained lower than expected, but economists say that the situation may change in the coming months as tariffs persist and pre-tariffs inventories get depleted.
Americans’ anxiety about the future path of inflation eased in May, as they also grew more upbeat about the state of their personal finances, a report released on Monday by the Federal Reserve Bank of New York said.
A senior Federal Reserve official has put the chances that Donald Trump’s trade war leads to a sustained burst of inflation at “50-50”, as he warned US rate-setters would face uncertainty “right through the summer”.
Consumers’ expectations for future price pressures improved across all horizons in May, and households’ pessimism about the labor market somewhat eased, according to monthly survey data released Monday by the Federal Reserve Bank of New York.
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.