From Investing.com: 2025-06-18 08:09:00

The Federal Reserve is holding off on rate increases due to concerns about potentially higher inflation from tariffs. Consumer prices for apparel have not risen despite tariff increases, suggesting limited pass-through to consumers. Import prices for apparel have actually declined, possibly due to foreign producers absorbing some tariff costs. Tariff collections have increased, but businesses have been slow to fully adjust prices. While gross margins for apparel businesses remain steady, the lack of price increases may indicate weakening consumer demand. The Fed is closely monitoring inflation data and assessing risks for future rate decisions.



Read more at Investing.com: What Are Inflation Surprises Telling Us About Tariffs?