The forecast for the U.S. economy looks cloudy as inflation rises: 'It would be wise for the Fed to remain on the sidelines'

Woman stands in front a the dairy section in a grocery store. (Credit: Brandon Bell/Getty Images)

• The rate of inflation for the 12 months ending in June was 2.7%, according to a Bureau of Labor Statistics report released Tuesday. The inflation print was in line with economists’ expectations. There were increases in key categories such as clothing, furniture, and leisure spending, which indicate tariff-related price increases could be starting to flow through the economy. 

Consumer prices rose in June at the level most economists expected, as the effects of President Donald Trump’s signature tariff policy began to worm their way through the economy.