U.S. inflation accelerated in June as Trump tariffs hit economy

Inflation and Tariffs Impact - US inflation accelerated in June, with the consumer price index rising 27% year-over-year [1] - Bank of America warns that tariffs are being passed on to consumers [3] - Wells Fargo notes that the impact of tariffs on consumer spending is now visible [3] - Yale Budget Lab estimates Americans will face an average tariff rate of over 18%, potentially rising above 20% if August 1 tariffs take effect [9] - Consumer electronics and household furnishings prices are already rising substantially [11] - The Treasury collected $27 billion in customs revenue in June, up $20 billion from a year earlier [12] Federal Reserve and Interest Rates - The President suggests the Fed should lower interest rates immediately [4] - Treasury Secretary is reportedly seeking a replacement for Powell when his term ends in May 2026 [5] - The independence of the Fed is critical for financial stability [16] - Concerns exist that meddling with interest rates for short-term gains could destabilize the economy [25]