It isn’t even officially summer, but it’s getting hot—at least in terms of inflation. The latest reading for the Consumer Price Index (CPI) topped 4% for the 12-month period ending in May for the first time since early 2023. And, perhaps just as importantly, so-called ‘core’ inflation, a metric that pulls out volatility associated with food and energy costs, has now ticked up by ~0.4% (on a rolling 12-month basis) since bottoming out earlier this year.

As onlookers of economic data, we treat both the headline and core measures of inflation with equal seriousness. For while it is important to see through volatile swings in certain components of the broad price index to distill the underlying trend, in their everyday lives, people express all price changes without regard to their origin.

In times like these, when prices are, by and large, either remaining stubbornly high or increasing, monetary authorities must be especially vigilant. The key figure on that front in the U.S. has recently changed. Kevin Warsh, who will hold his first meeting as Chairman of the Federal Open Market Committee (FOMC) over June 16-17th, has taken over that role from Jerome Powell.

We, and many others, will be keenly focused on his initial policy delivery, including any changes to the bias around short-term interest rates. While many had expected Warsh to come in and begin a renewed campaign of rate cuts, recent shifts in the economic environment are likely to put that on ice, at the very least.

Could a Trump Account Create a Future Roth IRA Millionaire?

Much of the attention surrounding the new Trump Accounts has focused on the government’s $1,000 contribution and the ability for families to save up to $5,000 annually for a child. While those features are certainly attractive, the most compelling planning opportunity may come years later.

Beginning in July 2026, eligible children can receive a one-time $1,000 government contribution if they were born on or after January 1, 2025, until December 31, 2028. Parents, grandparents, and others can then contribute up to $5,000 per year to help build long-term wealth.

Assuming annual contributions of $5,000 and a 7% average annual return, a child’s account could potentially grow to nearly $190,000 by age 18. The real opportunity may arise when the child reaches adulthood and is in a relatively low tax bracket—perhaps while attending college or starting their first job.

If future regulations permit conversions from a Trump Account to a Roth IRA, families could strategically move assets into a Roth while the child has little taxable income. Paying taxes at low rates today could allow decades of future tax-free growth and withdrawals.

For families focused on multi-generational planning, the Trump Account may be more than just a savings vehicle—it could become one of the earliest opportunities to build meaningful Roth IRA wealth for the next generation.

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