Chicago Fed chief Austan Goolsbee called the April inflation report 'comforting' but said he needs to see several more as officials consider rate cuts

Recent inflation data point to continued progress toward meeting the U.S. Federal Reserve's 2% inflation goal, but the outlook is now uncertain due to the possibility new import taxes will drive prices higher,

Annualized inflation eased to a 2.3 percent pace, the lowest since early 2021. But the month-to-month pace of inflation increased.

Inflation was relatively flat as President Donald Trump's sweeping tariffs went into effect in April, with lower grocery prices helping keep overall costs in check. Monthly inflation increased just 0.

The U.S. Federal Reserve has adopted a wait-and-see stance on the economic fallout from Trump's tariff campaign before cutting interest rates again. Traders currently price in about 50 basis points of rate reductions between now and the end of the year, according to LSEG data, with the next quarter-point cut seen in September.

Investing.com -- U.S. Federal Reserve Vice Chair, Philip Jefferson, addressed the inflation outlook in light of potential new import taxes during a New York Fed event on Wednesday. Recent data suggested progress toward the 2% inflation target set by the Federal Reserve, but the potential for new import taxes has introduced uncertainty.

Romanian inflation remained unchanged last month as the gravest political crisis since the collapse of communism pushed the leu to a record low which will likely intensify price pressure and complicate the central bank’s wait-and-see approach to monetary policy in the coming month.

Because it's based on third-quarter inflation, it's impossible to predict the 2026 COLA with any degree of accuracy. Because of the ongoing tariff back-and-forth, as well as a generally slowing U.S. economy, the inflation rate on the back end of the year is more uncertain than it usually is.