In June, consumer confidence increased for the first time in six months, showing a more positive view of the economy. This was because inflation stayed stable and the Trump administration reached a temporary trade agreement with China. The University of Michigan's consumer sentiment index, in its first report, went up by 16% from 52.2 to 60.5, even though it was still 20% lower than in December 2024. This increase happened after President Trump decided to delay tariffs on about 60 countries and made a temporary agreement with China, which helped reduce some of the economic worries from the long trade war. However, U.S. taxes on imports are still high compared to past levels and are expected to affect the economy more in the next few months. Consumer confidence is also still divided by politics, with Republicans feeling more positive about the economy under Trump than Democrats. But this month, confidence generally went up among supporters of both parties and independent voters. The Federal Reserve will probably see the drop in consumers' expectations for inflation as a good sign at their next meeting.