Why the Widening Trade Deficit May Keep Inflation Sticky

The U.S. trade deficit ballooned to $77.6 billion in May, a $23 billion swing from the previous month, even as the dollar held steady. Meanwhile, import prices posted a surprise gain, with costs from China hitting their highest since 2008. In this episode, Lucas and Luna explore how the widening deficit could feed into sticky inflation, complicating the Fed's next moves. They break down the role of rising oil imports, the weak yen, and the lag effect of earlier dollar strength. The hosts also discuss why this time feels different from previous deficit expansions and what it might mean for interest rates through the end of 2026. #TradeDeficit #Inflation #FederalReserve #ImportPrices #USChinaTrade #DollarIndex #OilPrices #YenWeakness #MonetaryPolicy #InterestRates #StickyInflation #EconomicData #May2026 #GlobalTrade #LucasAndLuna #FexingoBusiness #BusinessPodcast #Economics Keep every episode free: buymeacoffee.com/fexingo