Fed Reassesses Strategy Amid Rising Inflation

Gas prices spiked to a three-year high in May, pushing headline inflation to a four-point-one percent jump — the biggest since April last year — while core inflation stubbornly stays near three percent, forcing the Fed to reconsider its rate-cut plans. With AI demand driving up computer chip costs and services like dining, hotels, and healthcare also rising, consumers are still spending despite higher prices. Incomes adjusted for inflation rose for the first time in four months, and the economy expanded at 2.1% annually in Q1, with unemployment claims down. The Fed remains committed to hitting its 2% target, but markets brace for possible rate hikes this year — already rattling tech stocks. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/67b2633186891031