U.S. producer prices were unchanged in February for the first time in seven months, while fewer Americans filed claims for unemployment benefits last week, pointing to a stable economy that should allow the Federal Reserve to keep interest rates steady next Wednesday.

Headlines predicted bear markets, loss of savings, and encouraged talk of a recession on Tuesday after the European Union announced retaliatory tariffs on the United States. It appears Trump is succeeding at using tariffs as both a carrot and stick,

European stocks and U.S. futures fell on Thursday as investors turned their attention back to escalating global trade tensions, although further signs of an easing in U.S. price pressures limited declines.

U.S. consumer prices increased moderately in February as higher shelter costs were partially offset by cheaper airline fares, giving the Federal Reserve room to keep interest rates unchanged next week while monitoring the economic impact of a trade war.

If tariffs continue, Americans can expect to pay an extra 20 cents per gallon of gas, an additional 50 cents for each avocado, and thousands more on new vehicles, almost immediately.

The readout comes as President Donald Trump ramps up his trade war with a wide range of U.S. trade partners, threatening to send inflation higher. He has effectively imposed 25% t