US inflation rose to 2.7% in June, above expectations, driven partly by Trump's renewed tariffs. The increase from May's 2.4% reading highlights early signs of imported cost pressures as companies begin passing on costs to consumers. Core inflation, which excludes food and energy, climbed 2.9%, though second-hand car prices helped limit the rise. While Trump pressed the Fed for aggressive rate cuts, the inflation print tempered expectations for immediate action. Futures markets slightly trimmed rate-cut bets, now anticipating two modest reductions by year-end. Treasury yields and the dollar inched higher, signalling that investors see inflation risk building. However, US equities reacted calmly, briefly hitting record highs before easing. The data reinforces the Fed's cautious stance as it balances inflation with uncertain global trade conditions.