Economy

Economic data is finally catching up to the economic reality that U.S. businesses and consumers have been describing for months.

The 15% tariff rate will take effect on August 1. It will cover automobiles, but other details remain unclear.

The value of core capital goods orders—a proxy for investment in equipment excluding aircraft and military hardware—dropped 0.7% last month, and bookings for all durable goods fell 9.3 percent.

Although tariffs’ impact on consumer prices has been modest thus far, “the day of reckoning is finally upon us, and many [U.S. businesses] are planning price adjustments this summer, likely beginning in July.”

Newly released Fed study projects that the Trump administration’s approach to immigration and deportation will reduce U.S. GDP growth by nearly 1 percentage point this year.

The muted impact Trump’s tariffs have had on inflation has emboldened the White House and created splits among Fed officials.