The Federal Reserve is widely expected to hold interest rates steady at its meeting this week, but investors will be watching for something else — whether central bank policy makers are still committed to two rate cuts this year.

Inflation rose less than expected in May, a month when the effects of higher tariffs were starting to become more widespread.

The inflation rate is inching higher, with Wall Street expecting tariffs to increase prices throughout the remainder of 2025.

More than half of Americans (56 percent) say they believe that the U.S. economy is headed in the wrong direction, according to Bankrate’s new Consumer Sentiment Survey. That’s virtually unchanged from a similar Bankrate poll published before the November 2024 presidential elections, when 55 percent felt the economy was on the wrong track.

Inflation moved up in May as Trump's tariffs threatened to filter into consumer prices, CPI report shows. Gasoline prices declined for fourth month

The Federal Reserve is widely expected to hold interest rates steady next week, with investors focused on new central bank projections that will show how much weight policymakers are putting on recent soft data and how much risk they attach to unresolved trade and budget issues and an intensifying conflict in the Middle East.

U.S. economy thriving under Trump's second term with 515,000 new jobs since February 2025, declining inflation rates, and rising consumer and small business confidence.

The Consumer Price Index rose 2.4 percent in May, from a year earlier, a reading that reflects only the initial impact of President Trump’s tariffs.

Israel's annual inflation rate eased more than expected to 3.1% in May, official data showed on Sunday, although it is still slightly above target and the escalation of the country's conflict with Iran poses additional risks to the outlook.

Americans have yet to feel any sting of inflation from the Trump tariffs when they go shopping. Now a new look at wholesale prices suggests the coast might be clear for a while longer.