In June, people felt more positive about the economy for the first time in six months. This was because inflation stayed steady and the Trump administration made a temporary trade agreement with China. A first report from the University of Michigan showed that consumer confidence went up by 16%, from 52.2 to 60.5. However, this is still 20% lower than in December 2024. This increase happened after President Trump decided to delay new taxes on goods from about 60 countries and made a temporary peace with China. This has helped to reduce some of the economic worries caused by the trade war. Even with these good changes, U.S. taxes on imported goods are still high compared to the past and are expected to affect the economy more in the coming months. People's confidence in the economy also remains split along political lines, with Republicans feeling more positive under Trump than Democrats. But this month, confidence increased among supporters of both parties and those who don't belong to a party. The Federal Reserve will probably see the drop in what people expect prices to do as a good sign at their next meeting.