Federal Reserve, Inflation
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Inflation, Trump and Tariffs
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Consumer sentiment increased in June for the first time in six months, the latest sign that Americans’ views of the economy have improved as inflation has stayed tame and the Trump administration has reached a truce in its trade fight with China.
Treasury yields are higher Friday, with investors calculating that the surge in oil prices could push up overall inflation and make it harder for the Federal Reserve to cut interest rates. While geopolitical instability can sometimes boost Treasurys as investors look to buy safer assets,
President Donald Trump cited new inflation data in continuing to pressure Federal Reserve Chair Jerome Powell to lower interest rates, calling him a "numbskull" but adding that he won't seek to remove him.
Trump won't fire Fed Chair Powell, criticizes slow rate cuts, suggests supporting Fed interest rates increase if inflation hits.
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.