Economists and some business executives have warned that prices will likely head higher as Trump’s widespread tariffs take effect, though the timing and impact of those duties are now in doubt

The cost of living barely rose in April — and the rate of inflation slowed even closer to prepandemic levels — but it’s unclear whether the recent progress can be sustained as the trade wars drag on.

Federal Reserve policymakers wary of cutting interest rates in the face of President Donald Trump's aggressive tariffs will likely stick to their wait-and-see stance amid fresh data Friday showing muted inflation last month and evidence of increased consumer caution.

Consumer spending slowed despite rising incomes, potentially an early reaction to higher prices on some imported goods.

Inflation has edged down, but high housing costs could spark a fresh rise in prices and keep the Fed from cutting rates, Stifel's top economist said.

U.S. Federal Reserve policymakers could still cut interest rates twice this year as they projected in March, San Francisco Fed President Mary Daly said on Thursday, but for now rates should remain steady to make sure inflation is on track to reach the central bank's 2% goal.

Economists had expected the personal consumption expenditures index to tick down slightly to 2.2% from the month before.