Recent inflation data point to continued progress toward meeting the U.S. Federal Reserve's 2% inflation goal, but the outlook is now uncertain due to the possibility new import taxes will drive prices higher,

Chicago Fed chief Austan Goolsbee called the April inflation report 'comforting' but said he needs to see several more as officials consider rate cuts

Inflation retreated again in April on the back of lower prices for consumer staples like groceries and gasoline, and other items such as used cars and clothing. The consumer price index, a key inflation gauge, rose 2.3% in April from 12 months earlier, down from 2.4% in March, the Bureau of Labor Statistics reported Tuesday.

Investing.com -- U.S. Federal Reserve Vice Chair, Philip Jefferson, addressed the inflation outlook in light of potential new import taxes during a New York Fed event on Wednesday. Recent data suggested progress toward the 2% inflation target set by the Federal Reserve, but the potential for new import taxes has introduced uncertainty.

Live Updates Live Coverage Updates appear automatically as they are published. S&P 500 Upward Revision 10:45 am by Gerelyn Terzo The S&P 500 full-year 2025 target revisions are rolling in. Most recently,

The U.S. Federal Reserve has adopted a wait-and-see stance on the economic fallout from Trump's tariff campaign before cutting interest rates again. Traders currently price in about 50 basis points of rate reductions between now and the end of the year, according to LSEG data, with the next quarter-point cut seen in September.

Because it's based on third-quarter inflation, it's impossible to predict the 2026 COLA with any degree of accuracy. Because of the ongoing tariff back-and-forth, as well as a generally slowing U.S. economy, the inflation rate on the back end of the year is more uncertain than it usually is.