June Inflation Rises Amid Trump Tariffs, Fed Holds

U.S. consumer prices increased by 0.3% in June, marking the largest monthly rise since January, with annual inflation reaching 2.7% and core inflation up 2.9% year-over-year. These figures reflect the early effects of President Donald Trump's tariffs, which have begun to push up living costs for Americans. While economists believe the tariff impact is present but less severe than feared, further hikes may occur as inventories dwindle. Despite rising inflation, Trump continues to call for deep interest rate cuts and criticizes Federal Reserve Chair Jerome Powell for not acting. The Fed kept rates steady at its June meeting and remains cautious, with markets now giving a 60% probability of a rate cut in September. The ongoing inflation and trade tensions are set to remain prominent political and economic issues.