“It is also possible, however, that the upward pressure on prices from tariffs could spur a more lasting inflation dynamic, and that is a risk to be assessed and managed.”

“Higher interest rates have eroded the real-world purchasing power of the typical American household,” said Danielle Hale, Realtor.com’s chief economist.

The British central bank expects inflation to peak at 4 per cent in September, double its 2 per cent target, on the back of higher food costs but to drop back after that.

Chair Jerome Powell said that the inflationary impact from tariffs could well be temporary, but the central bank needed to guard against a more persistent effect.

Malaysia’s ringgit is poised to restart a rally, potentially hitting its strongest level against the US dollar in almost a year, as analysts see a dovish central bank and fiscal pledges boosting sentiment.

A US$10,000 investment in the S&P 500 Index a decade ago would now have more than tripled in value, while the same amount in China’s CSI 300 benchmark would have added just around US$3,000.

The credit rating company has affirmed its AA+ long-term rating for the US, in part because it thinks tariff revenues will reduce the fiscal hit of a recent tax and spending Bill.