Federal Reserve Chair Walsh, in testimony before the House Financial Services Committee, underscored that persistently high inflation will not be tolerated and reaffirmed a resolute commitment to price stability. The U.S. June consumer price index fell 0.4 percent month-on-month, the first decline since May 2020, while the core CPI was flat month-on-month, the lowest reading since January 2021. Chicago Fed President Goolsbee said he was encouraged by the decline in services prices, while adding that a string of good inflation reports is needed. However, with crude oil prices trending higher again amid renewed U.S.-Iran hostilities and President Trump's declaration of a ship blockade, the risk of inflation reaccelerating remains.