The Federal Reserve's fight against inflation just got more complicated as President Donald Trump's tariffs could push up inflation and increase the chances of a recession, economists said.

UBS’s Tariff Fear gauge, which is measured on a scale of 0-100, recorded 11%, down from 30% in March, for U.S. equities (SP500), meaning tariffs could not be priced in, according to UBS. European equities (VGK),

Interest rate traders are betting on the Reserve Bank cutting rates three times in 2025 to shelter Australia's economy from a sprawling trade war in a move likely to boost house prices, as assets like shares tied to economic activity struggle.

Rising tariffs in the U.S. could feed into more prolonged inflation than might be expected, Fed Governor Adriana Kugler said on Wednesday, pushing back on views that prices would only rise on imported goods.

However, the Commerce Department announced Friday that the Fed's key inflation measure expanded more than expected in February, as the growth in personal consumption expenditures put the 12-month inflation rate at 2.8%. Economists surveyed by Dow Jones had been expecting numbers closer to 0.3% for PCE and only 2.7% for the inflation rate.

Bond yields are plummeting on the tariff news. The U.S. 10-year Treasury note now yields just 4.06%. It was only a few months ago that investors were worried about stubborn inflation pressures potenti

German inflation fell more than expected in March, pointing to further policy easing by the European Central Bank.

Inflation is likely to be stoked further by upcoming price increases, including a 6.4% rise in the energy price cap on 1 April, hikes to water, mobile and broadband bills, higher rates of vehicle ...