Infection in the United States reaches 2.7 % with a tariff tariff

Open the newsletter to watch the White House for free

Your guide to what the second period of Trump means to Washington, business and the world

American inflation rose to 2.7 percent in June, bypassing expectations and indicating that Donald Trump’s tariff reaches prices.

The annual consumer price index number increased on Tuesday from 2.4 percent in May and above the 2.6 percent expectations among the analysts included in Bloomberg.

But in the wake of the data post, the US President maintained his campaign to pay the federal reserve to reduce interest rates.

“Consumer prices are low”, in fact published on his social network. “The federal reserve rate is dropped, now !!!”

The data of the work statistics office comes at a time when Trump connects his introductory war with trade partners in Washington, which threatens to impose large fees on importers from next month if they do not reach commercial deals.

Omar Sharif said in the “inflation report”: “Today’s report showed that the customs tariff began to bite.”

Trump has announced a set of customs tariffs since its return to the office, setting an essential rate of 10 percent and entering a set of fees for the sector. He was delayed in the introduction of more severe mutual duties, and it was scheduled to enter into force last week, until August 1.

“The effects of definitions finally appear in inflation, although it is still in a modest way, indicating that companies have so far absorbed a large share of influence,” said Eswar Barasad, Professor of Economics at Cornell University.

He added: “This is unlikely to be possible, especially if Trump follows his recent introductory threats.”

The high inflation in June is partially provided with high food prices, but it is met by weaker commodity prices.

The annual basic inflation, which raises the prices of the most volatile food and energy, increased by 2.9 percent, in line with expectations. However, many analysts emphasized that the basic number was depressed by the weak used car market.

Traders in the futures market have reduced their stakes slightly on interest rate discounts after the data was published, but they still expect discounts at a quarter of the end of the year.

Treasury revenues in dollars and dollars, which are especially sensitive to inflation expectations. S&P reached 500 records inside the day, but eventually closed 0.4 percent less.

“The market was relieved because the number was not worse,” said Andy Brenner, the head of the international fixed income, Natallance Securities.

He added that there was “fear … from a worse number” after US Treasury Secretary Scott Besin argued in an interview with Bloomberg on Tuesday against giving a lot of weight to one month.

Le Brene, DRW Trading market experts, pointed to the “silent” market’s reaction to personalities on Tuesday, but added: “We still have a possibility that inflation is lurking in the corner.”

Trump has accumulated pressure on Federal Reserve Chairman Jay Powell and at his position on Tuesday, the President renewed his call to reduce interest rates from three points, which he said would provide “trillion dollars annually” in the country’s debt payments.

However, most members of the Federal Reserve Prices’ Prices Committee have made it clear that they wanted to stop any reduction until the inflationary effect of definitions becomes clear.

Member indicated that they will be open to a cut by just this month.