US consumers are bracing for higher prices until the end of this year, according to Torsten Slok, chief economist at Apollo. In an interview with Bloomberg, Slok warned that President Trump’s tariffs will push prices up, despite potential interest rate cuts by the Federal Reserve.
Data from the Bureau of Labor Statistics showed a 2.7% rise in the consumer price index compared to last year, the biggest recorded increase since February. Prices for certain goods, such as tools and appliances, have risen significantly, while apparel and clothing have seen declining prices.
Slok believes that high inflation can lead to stagflation, a combination of still-high inflation and a weak economy. He warned that the Federal Reserve will likely wait until peak inflation is reached before cutting interest rates. The potential firing of Fed Chair Jerome Powell could also lead to a decrease in the value of the US dollar and an increase in long-term rates.
Furthermore, Slok expects wage inflation to rise in industries with undocumented immigrants, such as agriculture and construction. This could add to the risk of service inflation, making it essential for consumers to prepare for higher prices until November or December.
Source: https://www.nj.com/politics/2025/07/will-trumps-policies-soon-affect-your-wallet-leading-economist-shares-alarming-prediction.html