"We've had a couple of months of quite good economic reports" with inflation coming down. However, those are backward-looking, Chicago Fed President Austan Goolsbee said on Tuesday. With tariff uncertainty weighing on the economy,

Economists at Bank of America and Goldman Sachs forecast inflation will shoot up to more than 3.5% by year’s end.

A key U.S. inflation gauge slowed last month as President Donald Trump’s tariffs have yet to noticeably push up prices, while American incomes jumped.