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Inflation Is the Worst in Three Years. Kevin Warsh Says that’s Not the Full Story
Gasoline drove more than 60% of the monthly increase, and traders quickly shifted to pricing in a possible Fed rate hike by October.
- Consumer prices rose 4.2% in May from a year earlier, according to Bureau of Labor Statistics data released Wednesday, marking the first 4%-handle increase in three years and the third straight monthly rise.
- Gasoline prices jumped 7% from April and 40.5% over the year as the war in Iran chokes the Strait of Hormuz, with energy costs accounting for more than 60% of the monthly inflation damage.
- New Fed Chair Kevin Warsh faces his first policy meeting next week, as markets now price a 63% chance of a rate hike by October, reversing weeks of expectations for cuts.
- Retailers and families are adapting to cost pressures, with Dollar General Chief Executive Todd Vasos noting shoppers seek lower prices, while small businesses like Busy Baby have reduced staff as inflation outpaces wage gains.
- Core inflation rose 2.9% over the year, suggesting limited spillover; however, the American public remains fatigued after five years of above-2% inflation, creating political pressure as midterm elections near.
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15 Articles
15 Articles
Inflation is the worst in three years. Kevin Warsh says that’s not the full story
Inflation hit its highest level in three years last month, according to fresh data released this week — but new Federal Reserve Chair Kevin Warsh wants the central bank to focus on different measures.
·Atlanta, United States
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Inflation has hit a 3-year high. What it means and what the Fed might do
The U.S. annual inflation rate jumped to 4.2% in May, a three-year high. NPR's Steve Inskeep speaks with economist Claudia Sahm about what the numbers mean and what the Fed may do about it.
·Washington, United States
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Gas prices push inflation to a three-year high, squeezing consumers and businesses
Rising gas prices pushed inflation to its highest level in three years last month, a headache for the Federal Reserve and a potential political challenge for the Trump administration as midterm elections near.
·Los Angeles, United States
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Coverage Details
Total News Sources15
Leaning Left5Leaning Right1Center2Last UpdatedBias Distribution63% Left
Bias Distribution
- 63% of the sources lean Left
63% Left
L 63%
C 25%
12%
Factuality
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