Scott Helfstein, head of investment strategy at Global X, added that there’s “little evidence” tariffs are causing a meaningful rise in inflation at this point, noting that shelter and energy services like electricity and piped gas remain primary drivers.

Rising core inflation and foggy tariff risks inject fresh uncertainty into the Federal Reserve and interest rates.

Investors are betting harder on a September Federal Reserve interest rate cut after last month's mild inflation bump, which indicated the pass-through from President Donald Trump's sweeping import duties to goods prices has so far been limited.

Trump is weighing a possible lawsuit against Federal Reserve Chairman Jerome Powell, White House press secretary Karoline Leavitt said at her briefing on Tuesday.

President Donald Trump said he is weighing a lawsuit against Federal Reserve Chair Jerome Powell over the renovation of the central bank’s headquarters, a project whose cost overruns have drawn scrutiny.

In a post on his Truth Social social-media network, Trump again urged the Fed to lower interest rates, writing: “I am … considering allowing a major lawsuit against Powell to proceed because of the horrible, and grossly incompetent, job he has done in managing the construction of the Fed Buildings.”