US Producer Prices Steady in June Amid Mixed Inflation Signals

US producer prices remained flat in June due to offsetting factors: tariffs increased costs for goods like communication equipment, while demand for travel services softened. This suggests that tariff-driven inflation may not lead to broad-based price pressures, potentially allowing the Federal Reserve to pause interest rate hikes. Despite inflation concerns, the Fed is expected to keep rates steady in July, amid political pressure and economic data indicating mixed signals on inflation and demand.