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The U.S. Labor Department released its latest
In a related development, President Donald Trump announced the renewal of the "Iranian Blockade" in the
Despite the rise in oil prices, U.S. gas prices increased by approximately 6 cents per gallon over the past week, reaching a national average of $3.86. However, core inflation, which excludes volatile food and energy prices, remained stable in June. Economists view this stability as a positive sign that underlying inflation is continuing to cool. Year-over-year, core inflation rose to 2.6%, down from 2.9% in May, although it still exceeds the Federal Reserve's target of 2% inflation. Experts noted that the increase in gas prices due to the Iran conflict has not significantly impacted the broader economy, aside from a rise in airfares and a few other costs.
The slowdown in inflation has led economists to believe that the report alleviates pressure on the Federal Reserve to raise interest rates in the near future. The Federal Reserve had already opted to keep its key interest rate unchanged in June, refraining from increasing borrowing costs. On Tuesday, Federal Reserve Chair
In his testimony, Warsh asserted that the Federal Reserve has "no tolerance" for high inflation and is confident it will soon be a relic of the past. White House National Economic Council Director Kevin Hassett expressed respect for the Fed's independence and confidence in Warsh's leadership, noting the establishment of an advisory board comprising top experts. As members of Congress prepared to question Warsh about the latest inflation report and its implications for future interest rate decisions, the economic landscape appeared to be shifting in a more favorable direction.
