Major equity indices, which had been hovering near all-time highs, pulled back as geopolitical risks surged back to the forefront.

Consumer prices rose 2.4% over the year, and the month-over-month increase was lower than expected.

Trump has demanded the U.S. central bank lower its benchmark overnight interest rate immediately by a full percentage point, a dramatic step that would amount to an all-in bet by the Fed that inflation will fall to its 2% target and stay there regardless of what the administration does and even with dramatically looser financial conditions.

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

Prices of toys, car parts and major appliances jumped in the US last month, but the overall impact of Donald Trump's new tariffs on consumers remained relatively muted. Prices were up 2.4% in May compared with a year ago, up from a rate of 2.3% in April, the latest official inflation figures showed.

Softer-than-expected inflation in May drives up demand for U.S. government debt, lowering Treasury yields. The impact of tariffs on consumer prices remains unclear, as annual CPI ticks up to 2.4% from 2.

Forecasters say underlying US inflation likely picked up in May, reflecting a modest impact from tariff pass-through for goods that are mostly imported, while some services like airfares saw smaller price gains or outright declines.

US inflation was much softer than expected in May with little evidence of tariff-induced price hikes so far. Click to read.

Inflation was more moderate than economists anticipated in May on fears of President Donald Trump’s tariffs raising prices on a wide range of products.

Live Updates Live Coverage Updates appear automatically as they are published. Jamie Dimon's Sour Outlook 10:15 am by Gerelyn Terzo JPMorgan CEO Jamie Dimon remains unconvinced by any signs of a growing economy,

CBS's Margaret Brennan challenged Scott Bessent on Trump's tariffs, as retail giants warn of price hikes despite inflation hitting a four-year low.