US consumer spending remains robust despite rising prices, though new home sales dipped. President Trump is scrutinizing gasoline costs. Europe's US Treasury holdings could influence future standoffs. China is curbing its fiscal deficit, while Japan sees AI as an economic boon.

US inflation hits a three-year high at 4.2% amid rising consumer spending. Inflation at 3.8% in June priced at 56% YES.

The numbers are likely to keep pressure on the Federal Reserve to raise interest rates this year.