BiggerPockets Daily New Inflation Data Comes in Below Expectations—Will the Fed Shift Course?
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Jun 11, 2025 The latest Consumer Price Index report reveals a minimal rise in U.S. inflation, prompting discussions on its impact on business and potential Federal Reserve interest rate cuts. The podcast explores the driving forces behind this slowdown and how trade policies are influencing consumer prices. In New York City, new legislation abolishing upfront broker fees for many renters brings potential savings, yet landlords are already strategizing rent hikes. This dynamic highlights the ongoing conflict between tenant affordability and landlord interests.
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Soft Inflation Continues in May
- U.S. core inflation rose only 0.1% month over month in May, below expectations, signaling soft inflation.
- Businesses are absorbing tariff costs rather than passing them on, slowing inflation growth.
Tariffs Impact Specific Imports
- Major appliances and toys saw significant price increases, tied to imports from China.
- If tariffs increase again, companies will have to raise prices broadly, but trade policy with China may be settled.
Tariff Reversals Affect Economy
- Q1 GDP fell partly due to import surges ahead of anticipated tariffs.
- If tariffs are dropped, companies face oversupply and may lower prices, benefiting consumers.