Trump Calls for Fed Rate Cuts Amid Slight Inflation Rise and Tariff Impacts

June Inflation Data and Tariff Effects

• 📈 The June Consumer Price Index (CPI) report indicates a slight rise in inflation, with prices picking up higher than expected.
• 🎯 President Trump has set an August 1st deadline for US trading partners to negotiate new deals or face tariffs potentially up to 50%.
• 💡 The report highlights the impact of tariffs on specific items, such as clothing and apparel, which rose 0.4% monthly, and household furnishings, up 1%.
• 🏠 Shelter and housing costs remain a significant driver of annual inflation, showing persistent stickiness.
• 📦 Businesses have been stockpiling goods to get ahead of new tariff deadlines, with June seeing a record amount of goods entering the port of Los Angeles.

Federal Reserve and Interest Rates

• 📉 President Trump is urging the Federal Reserve to lower interest rates following the inflation data.
• ⚠️ The Federal Reserve is not expected to change interest rates at its July decision, with Chair Jerome Powell likely to emphasize waiting for more data.
• ❓ The key question for the remainder of the year is how many interest rate cuts might occur.

Market Impact and Nvidia

• 🚀 Nvidia's stock rose over 4% following news that it will be able to sell chips designed to circumvent export controls in China.
• 📈 This news helped lift the S&P 500 to a fresh high of 6,300, benefiting the tech industry broadly.
• 🇨🇳 China represents a significant market and revenue driver for Nvidia's chip business.