Powell calls out decline in trade services, 1.7 percent which indicates we are paying less to US producers. In fact for last month we paid .5% les for US producers. If you take that OUT of the numbers, the CPI number of 2.3 that Trump bragged about, is 2.5 or 2.6, higher than forecast.
So because his tariffs are so bad, it actually made CPI look better than it otherwise would have been
“We are beginning to see the impact of trade policy filtering into the hard data in such a way that it’s impossible to deny that it is now affecting revenues and profit margins for firms,”
"And consumers are already showing some signs of fatigue: Sales at US retailers slowed sharply in April to 0.1% after a surge of 1.7% in March, when shoppers rushed to beat the slew of new tariffs."
"“We may be entering a period of more frequent, and potentially more persistent, supply shocks — a difficult challenge for the economy and for central banks,”