In June, people felt more positive about the economy for the first time in six months. This is because inflation is stable, and the Trump administration reached a temporary trade agreement with China. A report from the University of Michigan showed that consumer confidence increased by 16%, from 52.2 to 60.5, even though it's still 20% lower than in December 2024. This rise happened after President Trump decided to delay new taxes on goods from about 60 countries and made a temporary agreement with China. This has helped reduce some of the economic worries caused by the trade war. However, US taxes on imported goods are still high compared to the past, and they are expected to affect the economy more in the coming months. Also, people's confidence in the economy is still divided by politics, with Republicans feeling more positive than Democrats. But this month, confidence increased among supporters of both parties and independent voters. The Federal Reserve will likely view the drop in people's expectations for rising prices as a positive sign at their next meeting.