June’s inflation report showed a 0.3% month-on-month reading for headline inflation, slightly lower than expected. Evidence of early tariff impacts were seen on some goods, but weak shelter and falling car prices offset this. The core CPI MoM% was 0.228%. President Trump may use this data to criticize the Fed, but the potential for higher inflation due to tariffs will likely show in the July, August, and September reports. The Fed is cautious about making a wrong move again and may wait until December to cut rates by 50bp. Housing costs could become a source of disinflation in late 2025/early 2026.

Read more at Investing.com: Modest Evidence of Tariff Impact on June US Inflation, but That Is Set to Change