In June, consumer confidence increased for the first time in six months, showing a more positive view of the economy. This is because inflation has stayed stable and the Trump administration reached a temporary trade agreement with China. A preliminary report from the University of Michigan's consumer sentiment index showed a 16% rise, from 52.2 to 60.5, though it is 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 has reduced some of the economic worries caused by 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 also remains divided by politics, with Republicans feeling more positive about the economy under Trump than Democrats. Still, this month saw a general increase in confidence among supporters of both parties and those who are independent. The Federal Reserve will probably see the drop in consumers' expectations for inflation as a good sign at their next meeting.