Where is all the inflation that was supposed to arise from the Trump tariffs? So far there’s hardly been any whiff of big price increases. Just wait, economists insist. It’s coming.

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.

Consumer prices rose 2.4% over the year, and the month-over-month increase was lower than expected.

Trump has demanded the U.S. central bank lower its benchmark overnight interest rate immediately by a full percentage point, a dramatic step that would amount to an all-in bet by the Fed that inflation will fall to its 2% target and stay there regardless of what the administration does and even with dramatically looser financial conditions.

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.

The Vice President said the Fed refusing to cut interest rates was "monetary malpractice," echoing sentiment voiced by Trump in recent months.

In today’s newsletter: California Governor Gavin Newsom’s fiery response to the White House’s troop deployment in Los Angeles. What May’s inflation numbers say about tariffs and the challenges facing the U.S. men’s national team at the 2026 World Cup.

Inflation moved up in May as Trump's tariffs threatened to filter into consumer prices, CPI report shows. Gasoline prices declined for fourth month