Inflation surged in June amid tariffs as Trump declared ‘inflation is dead’
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(NEW YORK) — Consumer prices rose 2.7% in June compared to a year ago, marking a notable surge of price increases as President Donald Trump’s tariff policy took hold and some retailers warned they may pass some of the tax burden onto shoppers.
The reading matched economists’ expectations.
The fresh data indicated an acceleration from 2.4% annual inflation recorded in May. Still, the inflation rate clocked in below 3% recorded in January, the month Trump took office.
Despite a rise of inflation, Trump appeared to celebrate the data on Tuesday. The president issued a social media post highlighting “Very Low Inflation” and calling on the Federal Reserve to cut interest rates by 3 percentage points.
The White House also touted the inflation reading, saying the rate of price increases demonstrates inflation is “on the right track.” Core inflation — a measure of inflation that strips out volatile food and energy prices — has matched or beaten economists’ expectations every month since Trump took office, the White House said.
“The data proves that President Trump is stabilizing inflation and the Panicans continue to be wrong about tariffs raising prices,” White House Press Secretary Karoline Leavitt said in a statement on Tuesday.
Egg prices cooled significantly in June, deviating from an overall rise in prices. The price of eggs climbed 27% over the year ending in June, which marked a slowdown from 41% year-over-year growth in May.
Under Trump, inflation has defied doomsday predictions and helped to propel sturdy economic performance.
While inflation has eased, price increases have persisted at a higher rate than the Federal Reserve’s target level of 2%.
Some analysts expect price increases to accelerate over the coming months as tariffs take hold, though they acknowledged that the path forward remains unclear amid Trump’s fluctuating policy.
Typically, importers pass along a share of the tariff-related tax burden in the form of higher costs for shoppers. A host of major retailers, including Walmart and Best Buy, has warned about potential price hikes as a result of Trump’s levies.
The Federal Reserve issued a forecast last month indicating the central bank expects a rekindling of inflation.
The personal consumption expenditures index, a measure of inflation preferred by the Fed, will rise from 2.1% to 3% over the remainder of 2025, the central bank predicted. That forecast marked higher inflation expectations than the central bank had issued in March.
So far this year, the Fed has opted to hold interest rates steady as policymakers assess the potential impact of tariffs.
Speaking at a press conference in Washington, D.C., last month, Powell said tariffs would likely “push up prices and weigh on economic activity” over the course of this year. But, he added, the effects would depend on the “ultimate level” of tariffs, which have frequently shifted.
National Economic Council Director Kevin Hassett, a top economic advisor to Trump, on Monday rebuked concerns about tariff-related inflation. The Fed, Hassett told CNBC, has been “very, very wrong” in its assessment of a potential resurgence of price increases.
The posture of restraint at the Fed in recent months has elicited sharp and repeated criticism from Trump.
“We have a man who just refuses to lower the Fed rate,” Trump told reporters last month. “Maybe I should go to the Fed. Am I allowed to appoint myself? I’d do a much better job than these people.”
The president is legally barred from appointing himself head of the Fed, an independent federal agency.
The Fed is set to hold its next meeting on July 29 and 30. Investors peg the chances of a decision to leave rates unchanged at 95%, according to the CME FedWatch Tool, a measure of market sentiment.
(WASHINGTON) — Emil Bove, President Donald Trump’s former defense attorney who took aggressive steps to enforce Trump’s political agenda at the Justice Department in the early months of his presidency, told the Senate Judiciary Committee, “I’m not anybody’s henchman” at a confirmation hearing Wednesday to consider him for a federal judgeship.
Trump last month tapped Bove, who has been helping lead the Justice Department, for a judgeship on the 3rd U.S. Circuit Court of Appeals.
In his opening statement Wednesday, Bove vigorously disputed what he described as “a wildly inaccurate caricature” of himself generated by the “mainstream media” which has cast him as a “henchman” of President Trump.
“I am someone who tries to stand up for what I believe is right, I’m not afraid to make difficult decisions — I understand that some of those decisions have generated controversy,” Bove said. “I respect this process, and I’m here today to address some of your questions about those decisions, but I want to be clear about one thing up front: There is a wildly inaccurate caricature of me in the mainstream media. I’m not anybody’s henchman. I’m not an enforcer.”
The hearing comes one day after a former top DOJ career official issued an explosive whistleblower complaint accusing Bove of allegedly suggesting the Trump administration should defy judicial orders that sought to restrict their aggressive efforts to deport undocumented immigrants earlier this year.
The 27-page complaint, provided to the Senate Judiciary Committee and the Justice Department’s top watchdog and obtained by ABC News, alleges that Bove and other top DOJ officials strategized how they could mislead courts regarding the administration’s immigration enforcement efforts and potentially ignore judges’ rulings outright.
Addressing the complaint, Bove denied the allegations outright.
“No, I have never advised the Department of Justice attorney to violate a court order,” Bove said. “Even if that account is taken at face value, the whistleblower acknowledges that he left the meeting on March 14 of this year with the understanding that, of course, the department would advise clients to abide by court orders.”
Bove also suggested the issuance of the complaint by Erez Reuveni, a longtime career official who was promoted under the first Trump Administration for his immigration legal work, was an example of the “unelected bureaucracy” seeking to thwart “the unitary executive” and “the people that elected the president.”
“What I mean by that is, throughout this complaint, there’s a suggestion that a line attorney, not even the head of the Office of immigration litigation, was in a position or considered himself to be, to bind the department’s leadership and other Cabinet officials,” Bove said. “I don’t abide that line thinking in my management style, and I’m not apologetic of that.”
Bove also rejected allegations that there was any “quid pro quo” deal with New York Mayor Eric Adams in the DOJ’s decision to drop federal corruption charges against him in exchange for his support on immigration enforcement.
“That’s simply false and it’s refuted by — refuted by the record,” Bove said.
Multiple career prosecutors resigned in protest over the move and described the arrangement as a clear ‘quid pro quo.’ A federal judge ultimately rejected the department’s request to drop the case ‘without prejudice’ — which would have left the prospect they could seek charges against Adams again if he did not continue supporting the administration. In his ruling dismissing the charges, Judge Dale Ho was deeply skeptical of the government’s motives, writing, “Everything here smacks of a bargain.”
Adams has denied the allegations and has pushed back on accusations of a quid quo pro.
Ranking Democratic Senate Judiciary member Sen. Dick Durbin, in his opening remarks at Wednesday’s hearing, said, “The former personal defense attorney of President Trump, Mr. Bove has led the effort to weaponize the Department of Justice against the president’s enemies. Having earned his stripes as a loyalist to this President, he’s been rewarded with this lifetime nomination.”
Republican Senate Judiciary Chairman Chuck Grassley cast Bove as a victim of an “intense opposition campaign” by Democrats and the media.
“I think that this committee owes this nominee a fair shake and respect at this hearing,” Grassley said. “This is hardly the first time this Congress that we’ve come into a nomination hearing against a backdrop of breathless claims that one of President Trump’s nominees is uniquely unqualified or unfit.”
Grassley argued that lawmakers should instead look to Bove’s resume as a federal prosecutor in the U.S. Attorney’s Office for the Southern District of New York and his time as a judicial clerk on the 2nd Circuit Court of Appeals, prior to serving as Trump’s personal attorney.
“This high stakes worked demands sharp legal judgment and steady resolve,” Grassley said. “Day in and day out, he was in the trenches putting terrorists and drug traffickers behind bars … Put very simply, Mr. Bove checks every box — academic distinction, federal courtships, complex trial and appellate litigation, senior Justice Department leadership. His experience isn’t just sufficient, it is very exceptional.”
(WASHINGTON) — With the Fourth of July just days away, law enforcement and federal officials are on guard about Iranian retaliation in the United States, despite officials saying there are no specific, credible threats at this time.
This comes after the U.S. military’s strikes on three Iranian nuclear facilities by B-2 stealth bombers and Tomahawk cruise missiles.
“We would be foolish to assume that they’re not plotting revenge even if we can’t see it right now. It will come, and we need to maintain vigilance because if we don’t, they will use the element of surprise to their advantage and cause harm,” said Elizabeth Neumann, a former Department of Homeland Security assistant secretary for counterterrorism during the first Trump administration.
Even before Saturday’s bombing mission in Iran, the U.S. was at a heightened level of security after a string of high-profile terrorist attacks occurred across the country in the first six month of 2025 — including a deadly truck ramming rampage in New Orleans on New Year’s Day and a June 1 Molotov cocktail attack in Boulder, Colorado.
The wave of extremist violence has come against a backdrop of a rising number of assaults, vandalism and harassment nationwide linked to the Israel-Hamas war.
In the wake of the U.S. mission to cripple Iran’s ambitions to develop a nuclear weapon, Iran’s supreme leader, Ali Khamenei, released a message on social media saying, “We will not surrender.” Iran’s Foreign Minister Abbas Araghchi threatened in a speech that his country will seek revenge that will have “everlasting consequences” and accused the United States of committing “dangerous, lawless and criminal behavior.”
“In accordance with the U.N. Charter and its provisions allowing a legitimate response in self-defense, Iran reserves all options to defend its sovereignty, interests, and people,” Araghchi said.
On Monday, Iran carried out a missile attack on the United States’ Al Udeid Air Base in Qatar. U.S. Central Command said both U.S. and Qatari forces “successfully defended” against the attack and that no casualties were reported.
Later in the day, President Donald Trump announced that a ceasefire had been agreed upon between Israel and Iran, but tensions remained high into Wednesday.
‘A long memory’
In reponse to the U.S. attack on Iran’s nuclear apparatus, the Department of Homeland Security (DHS) issued a nationwide bulletin, saying the ongoing conflict is “causing a heightened threat environment in the United States” and warning that “low-level cyber-attacks against US networks by pro-Iranian hacktivists are likely, and cyber actors affiliated with the Iranian government may conduct against US networks.”
Neumann, an ABC News contributor, said Iran’s initial response to the U.S. bombing of three of its nuclear facilities is similar to what the country did following the Jan. 3, 2020, U.S. strike in Baghdad, Iraq, that killed Gen. Qassem Soleimani, leader of Iran’s elite Quds Forces.
Five days after Soleimani’s death, Iran’s Islamic Revolutionary Guard launched a ballistic missile attack on the U.S. Al Asad airbase in western Iraq. The attack left over 100 U.S. service members with traumatic brain injuries, according to the Pentagon.
“We were definitely very concerned about the potential for something to happen in the homeland,” said Neumann, who was working in the DHS under the first Trump administration when Soleimani was killed.
Neumann said the DHS’s Iran specialists assumed Iran would activate sleeper cells possibly in the United States and that Hezbollah, the Iran-backed Shiite militia group, would launch terrorist attacks against U.S. interest.
But Neumann said Iran’s attack on the Al Asad airbase was used by Iran to appease its domestic audience by publicly displaying pictures of the attack to give the impression they were pushing back against the United States.
“Since they mostly control the airwaves in Iran, they can kind of get away with it. They don’t actually have to do a major military strike and hurt us the way that we’ve hurt them because they can just kind of manufacture the story that they want for their domestic audience,” Neumann said.
Neumann recalled that at the time, the DHS rapidly prepared an assessment of what Soleimani’s assassination could mean for the United States and released a bulletin similar to the one DHS put out this week. But after the attack on the Al Asad airbase, Iran’s response quieted down.
“The Iranian regime … has a long memory and they recognize that they do not have the strength right now to get back at us,” Neumann said. “But they will wait and they will look for opportunities to cause harm.”
She noted that in August 2022, the U.S. Department of Justice announced that a member of the Islamic Revolutionary Guard attempted to pay an individual $300,000 to kill John Bolton, the National Security Advisor during Trump’s first term, saying it was likely in retaliation for Soleimani’s death.
In November 2024, the Department of Justice announced that three people, including one described as an “asset” of the Islamic Revolutionary Guard, were charged in Iran-linked murder plots, with one of them accused of trying to assassinate then-President-elect Trump to avenge the killing of Soleimani.
Iran could turn to ‘crude or escalatory tactics’ employing proxies
A threat assessment by the Center for Internet Security that was released after the U.S. bombing of Iran’s nuclear facilities, said, “Tehran is likely to leverage a combination of direct, proxy, and irregular/inspired forces to conduct physical, cyber, or terrorist attacks against US interests both at home and aboard.”
“In light of Israeli strikes and the degradation of the Iranian proxy network in the Middle East, Iran will likely seek to re-establish deterrence against its adversaries, potentially relying on crude or escalatory tactics and informal networks,” according to the assessment. “US interests — particularly Embassies and military bases overseas — are likely to be targeted, and it is possible that Tehran will order or encourage attacks on the US government institutions, businesses, critical infrastructure, or civilians.”
Since the Oct. 7, 2023, widespread surprise attack on Israel by Hamas terrorists that ignited the Israel-Hamas war in Gaza, the DHS and FBI have repeatedly issued warnings that large-scale events are prime targets of violence.
“Violent extremist messaging continues to highlight major sporting and cultural events and venues as potential targets, and threat actors — including domestic violent extremists (DVEs), homegrown violent extremists (HVEs) inspired by Foreign Terrorist Organizations (FTOs), and other mass casualty attackers not motivated by an ideology — previously have targeted public events with little to no warning,” according to the joint bulletin put out in May by the DHS and FBI.
Given the nation’s alarming security threat, the FBI is planning to reallocate potentially thousands of FBI agents away from immigration enforcement work to focus on cyber threats and counterterrorism efforts, sources familiar with the matter told ABC News on Tuesday. Months ago, as ABC News has previously reported, the FBI directed agents from around the country, many of them working on counterterrorism and cyber issues, to focus instead on helping DHS conduct immigration enforcement operations.
‘Lone wolf’ and cyberattacks
Richard Frankel, a retired FBI agent, said that no credible threats against the U.S. homeland have been uncovered, “but there has been a lot of chatter.”
Frankel said in an ABC News Live interview on Monday that the FBI has been briefing the governors across the country about the heightened threat.
“They’re going to tell the governors that they need to maybe heighten their protection of special sights,” said Frankel, an ABC News contributor, adding that the New York Police Department has added extra security to landmarks such as the Empire State Building and the National September 11 Memorial & Museum as well as synagogues and other religious institutions.
Don Mihalek, a retired senior Secret Service agent and a national security and law enforcement consultant, said a major concern for law enforcement is that Iran or its proxies will try to elicit “lone wolf” attackers, who are radicalized online, to create mayhem on its behalf.
“I think that’s the bigger issue that everybody is worried about because I don’t think the Iranians are dumb enough to launch a state-sponsored, flag-waving attack against the continent of the United States,” Mihalek, an ABC News contributor, said. “But I think they definitely could get some guy in a basement who is antisemitic, who is anti-U.S., who just needed that little push to go to the local shopping center or a mall some place and conduct a low grade, low level attack that would disrupt that part of the United States and if it was coordinated it would have a significant impact on the U.S.”
Mihalek noted the possibility of Iranian sleeper cells being activated in the United States to organize and execute attacks.
During a House Appropriations Subcommittee on Commerce, Justice and Science on Monday, Attorney General Pam Bondi was asked by Rep. Tony Gonzales, R-Texas, how many Iranian sleeper cells currently exist in the United States.
“Congressman, I can’t talk about that in this setting. But what I can tell you is I know Homeland Security, I know the FBI, and they are focusing on doing everything we can to keep our nation safe. And they will continue to do that,” Bondi said.
Asked by Gonzales how many active cases of threats to the homeland the DOJ currently has open, Bondi answered, “Countless” without elaborating.
And just flagging DHS Secretary Kristi Noem’s comments on the threat from Monday:
Reporters asked DHS Secretary Kristi Noem on Monday about the possibility that people who have crossed the border illegally could be Iranian-affiliated, radicalized actors.
“We’re aware that some of these folks that may have come into our country could’ve been radicalized and so that is why we go out every day to identify individuals that could be a threat to our homeland,” Noem said. “We recognize that as tensions escalate, there could be more of a potential for threats here at home. That’s why we’re at an elevated threat right now and we will continue to stay diligent.”
Nome said that in the past, there have been people who have been radicalized both in the United States and abroad.
Asked about concerns over the upcoming Fourth of July holiday, Noem said, “There’s been concern since I took this job.”
“We have incredible threats to this country from many nations that are enemies to the United States of America,” Noem said. “It’s not just Iran. It’s North Korea, Russia, China — consistently every single day are trying to threaten our way of life.”
How can the average citizen help?
Mihalek said another worry for law enforcement is that Iran or its supporters will attempt to commit cyberattacks in the United States.
In 2023, then-White House deputy national security advisor Anne Neuberger told the Associated Press that an Iranian hacker group known as “Cyber Av3ngers” had conducted low-level cyberattacks on U.S. water authorities in multiple states and were responsible for a string of ransomeware attacks on the health care industry.
Mihalek said the average citizen could play a significant role in protecting themselves and helping law enforcement thwart attacks, particularly during large events scheduled around the Fourth of July.
“If you see something strange or have somebody in your orbit who is acting strange, you want to let somebody know so they can look at it and investigate it. Often when that happens, the threat is mitigated before it becomes a problem,” Mihalek said. “The other part is if you’re going out some place, you’re going to an event, take the time to look for the exits, how to get out of some place, pay attention to your surroundings and listen to your gut.”
(GALENA PARK, Texas) — A 9-year-old girl has died in after she was intentionally left alone in a hot car while her mom was at work, according to Harris County, Texas, Sheriff Ed Gonzalez.
The girl’s 36-year-old mother left the child unattended in a white Toyota Camry on Tuesday from approximately 6 a.m. to 2 p.m. while she worked at a manufacturing plant in Galena Park, Texas, near Houston, the sheriff’s office said during a press conference.
The mother left the child with some water, partially rolled down the windows of the vehicle and then “proceeded to go to work for the day,” officials said.
“There’s never an excuse to leave a child unattended,” Gonzalez said during the press conference.
Upon returning to the vehicle later in the afternoon when her shift ended, the mother found her daughter unresponsive. Law enforcement was contacted at approximately 2:06 p.m. and detained the mother, officials said. Temperatures in the Houston area reached around 93 degrees Fahrenheit on Tuesday, according to the National Weather Service.
The child was transported to a local hospital, where she was pronounced dead, officials said.
Detectives continue to speak with the mother to gain more insight on why the child was kept in the car and the exact timeline of how long she was alone in the vehicle, the sheriff said. Officials are also waiting to receive the child’s autopsy results before deciding whether to press any charges.
Gonzalez said the incident, “which could have been prevented,” is a “unique” situation, since most hot car deaths are typically an accident.
“Maybe she has to make ends meet and keep food on the table and work. But the risk of death or harm — there’s just no reconciling that in my mind. You got to make other arrangements. It’s not worth it to put a child at risk like this, for any particular reason,” Gonzalez said.
He went on to say that nothing at this point shows that the mother “thought this would be the outcome.”
This tragedy marks the third hot car death to occur in Texas in the last four days and at least the 13th child to die in a hot car nationwide this year, according to Kids and Car Safety, an organization focused on “saving the lives of children and pets in and around vehicles.”
