A downside surprise in U.S. CPI data gave only a small boost to Treasurys, probably because tariff-driven price hikes still look imminent, says Capital Economics’ James Reilly in a note. That said, these price hikes look discounted in markets,

The Consumer Price Index rose 2.4 percent in May, from a year earlier, a reading that reflects only the initial impact of President Trump’s tariffs.

CPI report shows that President Trump's whipsaw tariff policies have not had an outsized impact on inflation, but economists remain on guard.

Economists and investors for possible effects of tariffs on prices when the Bureau of Labor Statistics release May’s consumer price index on Wednesday.

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.

For four months many economists have predicted that US inflation would reignite, in large part due to President Donald Trump’s trade war and the knock-on effects his tariffs would have on the economy.

Will the May Report Show Inflationary Effects From Tariffs? “The May CPI report will test whether April’s potential signs of tariffs were early glimmers of inflation effects to come or more ...

Kugler's remarks, among the last of public comments from Fed policymakers ahead of their June 17-18 meeting, indicate that she sees inflation as the more pressing worry for the Fed. The central bank is widely expected to leave the policy rate in its current 4.25%-4.50% range for the next couple of meetings.

The dollar was dragged lower after the US president told reporters he would send letters to trading partners outlining new tariff rates in the next couple of weeks, as the end of the 90-day pause on so-called “reciprocal” levies approaches next month.