Overview

• April's Consumer Price Index showed a 2.3% year-over-year increase, the slowest inflation rate since 2021, down from 2.4% in March.
• President Trump renewed calls for the Federal Reserve to cut interest rates, asserting that prices for essential goods are declining and urging faster action.
• The Federal Reserve held its benchmark rate steady at 4.25%–4.50%, warning of inflation risks tied to tariffs and labor market uncertainties.
• Fed Governor Adriana Kugler highlighted that many businesses plan to pass tariff costs onto consumers, potentially driving future inflation.
• Wall Street forecasters predict inflation may rebound in the coming months as the delayed effects of tariffs become evident in economic data.