The article discusses the current state of the U.S. economy under President Trump's administration, specifically focusing on inflation trends. Recent data shows a monthly increase of 0.2% in the Consumer Price Index, representing a decrease in overall inflation rates, yet risks remain. Economists warn that future tariffs and trade policy uncertainties could push inflation higher again. While food prices have stabilized for many products, eggs have seen an unprecedented rise. The Federal Reserve remains cautious, seeking sustainable reductions in inflation to meet its 2% target amidst an unpredictable policy landscape.
The data "confirms that despite the idiosyncratic price bumpiness, economic fundamentals were and remain disinflationary," said EY-Parthenon chief economist Gregory Daco.
Looking ahead, however, tariffs, confusion around trade policy and tighter immigration policy mean the risks to inflation are [tilted] to the upside."
Overall food at home prices were flat, and dairy, fruit, and vegetable prices were down, which was enough to offset another huge jump in egg prices.
The Federal Reserve wants proof that inflation is moving 'sustainably' lower, though inflation remains too high for comfort despite recent stabilization.
Collection
[
|
...
]