💨 Abstract

In July 2025, inflation in the U.S. is expected to rise to 2.8% annually due to tariffs on imported goods like furniture and toys, making it challenging for the Federal Reserve to cut interest rates as demanded by President Trump. Core inflation, excluding food and energy, is predicted to hit 3%. These increases put the Fed in a tough position, balancing slower hiring and Trump's demands for lower rates against rising inflation.

Courtesy: WTOP Staff