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Consumer inflation shows mild rise. Yet trade wars seen lifting prices despite reduced tariffs - MarketWatch

1. Consumer prices increased 0.2%, matching expectations after March's decline. 2. Inflation likely won't slow much further due to ongoing tariff impacts. 3. Lower tariffs ease inflation worries but costs for goods may still rise. 4. Fed keeps interest rates steady while assessing tariffs' economic effects. 5. Trade wars could lead to inflation above 3% later in 2025.

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FAQ

Why Bearish?

The prospect of rising inflation may hinder market gains; historically, rising inflation has negatively impacted stock indices, including DJIA.

How important is it?

Rising inflation and tariffs directly influence consumer spending, which can affect corporate earnings and, subsequently, DJIA.

Why Long Term?

The effects of tariffs on costs may lead to sustained inflation, impacting the economy and stock prices over several years.

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