The Federal Reserve’s preferred measure, the US April core Personal Consumption Expenditure (PCE) price index, nudged down to 2.5 percent year over year from the previous 2.6 percent, indicating a continuation of the trend toward decelerating inflation.

However, concerns about a potential resurgence of inflation driven by global trade tensions complicate matters. The futures market for the Fed’s funds shows a 95 percent likelihood that the Fed will maintain its policy rate in June, alongside more than 70 percent probability of keeping the rate steady in July.

In addition, the US continues to point fingers at compliance issues with China, claiming that the nation is breaching its trade agreement, as noted by its trade representative via social media. Previously, the US Treasury Secretary remarked that trade talks with China were “a bit stalled.” Nonetheless, there are still indications of a potential high-level meeting between representatives from both nations.

Earlier last week, a US Federal Court overturned Trump’s “Libertarian Day,” which shook up the markets, but an appellate court later reinstated his request to reestablish tariffs. During this........

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