Overview

• June consumer inflation rose 2.7 percent year-on-year and core measures like Trimmed Mean, Sticky Inflation and Supercore have climbed to multi-year highs.
• Bond investors demanded higher returns as 30-year Treasury yields breached five percent over policy uncertainty and speculation about Fed leadership changes.
• President Trump has warned of 30 percent duties on €370 billion of European goods starting August 1 if negotiators fail to reach a deal.
• EU diplomats say trade discussions are in their closing phase and hope to finalize agreements by mid-week to head off planned tariffs.
• Fed Chair Jerome Powell has resisted political pressure for interest rate cuts and indicated monetary policy will remain restrictive until inflation eases.