Also, much of what the U.S. imports is made up of raw materials and parts that are used to make goods in the U.S. It can take time for those higher input costs to show up in consumer prices. Economists at JPMorgan have argued that many companies are absorbing the cost of the tariffs, for now. Doing so can reduce their profit margins, which could weigh on hiring.Cooling inflation has put and its chair, Jerome Powell. The Fed ramped up its short-term interest rate in 2022 and 2023 to slow the economy and combat inflation, which jumped to a four-decade high nearly three years ago. With price increases now nearly back to the Fed’s target, some economists — and — say that the central bank could reduce its rate back to a level that doesn’t slow or stimulate growth.20 Years Of Free JournalismYour Support Fuels Our MissionYour Support Fuels Our MissionFor two decades, HuffPost has been fearless, unflinching, and relentless in pursuit of the truth. to keep us around for the next 20 — we can't do this without you.We remain committed to providing you with the unflinching, fact-based journalism everyone deserves.Thank you again for your support along the way. We’re truly grateful for readers like you! Your initial support helped get us here and bolstered our newsroom, which kept us strong during uncertain times. Now as we continue, we need your help more than ever. .We remain committed to providing you with the unflinching, fact-based journalism everyone deserves.Thank you again for your support along the way. We’re truly grateful for readers like you! Your initial support helped get us here and bolstered our newsroom, which kept us strong during uncertain times. Now as we continue, we need your help more than ever. .Support HuffPostAlready contributed? Log in to hide these messages.20 Years Of Free JournalismFor two decades, HuffPost has been fearless, unflinching, and relentless in pursuit of the truth. to keep us around for the next 20 — we can't do this without you.Support HuffPostAlready contributed? Log in to hide these messages.Trump has also repeatedly attached the Fed for not cutting rates, calling Powell a “numskull” and a “fool.”Advertisement, A key inflation gauge moved higher in May in the latest sign that prices remain stubbornly elevated while Americans cut back on their spending., WASHINGTON (AP) — A key inflation gauge moved higher in May in the latest sign that prices remain stubbornly elevated while Americans also cut back on their spending last month. Prices rose 2.3% in May compared with a year ago, up from just 2.1% in April, the Commerce Department said Friday .