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.

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,