US Inflation Expected to Rise with the Evolution of Trade Policies

Idanna Appio, Senior Vice President at First Eagle, an American investment management company, stated that following the moderate CPI report in April, U.S. inflation might rebound in the coming months. It is expected that there will be other moves in trade, with potential announcements of new tariffs and agreements. We must wait and see how some of these deals turn out. The recent US-UK trade agreement and the tariff suspension with China suggest that tariffs will be "significantly lower" than previously expected. The Federal Reserve seems more willing to accept the view that the impact of tariffs on inflation may not be merely temporary.