The Federal Reserve is widely expected to hold interest rates steady next week, with investors focused on new central bank projections that will show how much weight policymakers are putting on recent soft data and how much risk they attach to unresolved trade and budget issues.

The Consumer Price Index rose 2.4 percent in May, from a year earlier, a reading that reflects only the initial impact of President Trump’s tariffs.

Former Treasury Secretary and Federal Reserve Chair Janet Yellen expects inflation to rise to “at least 3% or slightly over” due to tariffs, despite recent encouraging signs of price stabilization. During a CNBC interview,

Inflation moved up in May as Trump's tariffs threatened to filter into consumer prices, CPI report shows. Gasoline prices declined for fourth month

A range of imported household appliances including dishwashers, washing machines, refrigerators and more will be subject to the US’s expanded steel tariffs starting later this month, Reuters reported on Thursday.

Economists and investors for possible effects of tariffs on prices when the Bureau of Labor Statistics release May’s consumer price index on Wednesday.

Canada’s unemployment rate rose to 7% in May, and more layoffs may follow, according to former Bank of Canada Governor Stephen Poloz, who linked weakening labor demand to trade uncertainty and inflationary pressures from counter-tariffs.

Underlying US inflation rose in May by less than forecast for the fourth month in a row, suggesting companies are finding ways to limit how much of higher costs from tariffs they pass through to customers.