* Mild CPI inflation reading not likely to shake the Fed's wait-and-see stance on tariffs *
Investors are not expecting an easing of monetary policy until September at the earliest. The Fed is widely expected to hold rates steady at its next meeting on June 17-18.
A cooler-than-expected inflation reading from May is not likely to shake the view of most Federal Reserve policymakers that rates should stay on hold until there is more clarity about the impact from President Trump's tariffs.
Some economists were expecting to see higher costs from those tariffs showing up in the Consumer Price Index (CPI) report released Wednesday, but instead CPI showed that inflation pressures were relatively stable and even eased on a monthly basis.
President Donald Trump on Wednesday reiterated his view that the Federal Reserve should cut interest rates by one percentage point, saying the latest inflation figures were "great."
Source: Yahoo Finance
...
I think the FED is the only one still keeping D. Trump "in check."
The FED provides optimism to investors, and by prudently delaying interest rate cuts, it corrects the implementation of the president's unrealistic dreams, helping us overcome and adapt to a new, unpredictable style.
He calls it "negotiation", but global trade apparently requires a different approach than local merchants, more predictability and time for mutual agreements.
He doesn't have enough trade leverage to humiliate and blackmail countries like China, the UAE, Japan, the EU, etc., even if he thinks otherwise.