U.S. inflation rose to 4.2% in May, the highest level in three years, as energy costs tied to the Iran war continued to climb. Core inflation increased 2.9%, while wage growth lagged behind the broader rise in prices.
Posts tagged as “Kevin Warsh”
U.S. employers added 172,000 jobs in May and the unemployment rate stayed at 4.3%, signaling a resilient labor market. The strong report comes as inflation and energy prices rise, complicating the Federal Reserve’s next interest rate decision.
The Senate Banking Committee advances Kevin Warsh's nomination for Federal Reserve chair amid partisan divisions and ongoing political controversy. Meanwhile, current Chair Jerome Powell announces he will remain on the Fed board after his term ends, citing political pressures and investigations.
Prosecutors from Jeanine Pirro's office attempted an unannounced visit to the Federal Reserve's renovation site but were denied access amid a criminal investigation into Fed Chair Jerome Powell. The probe and visit have complicated the confirmation of President Trump's nominee to succeed Powell.
Federal Reserve Holds Interest Rates Steady Amid Middle East Conflict and Rising Inflation Pressures
Federal Reserve Holds Interest Rates Steady Amid Middle East Conflict and Rising Inflation Pressures
The Federal Reserve announced it will keep its benchmark interest rate steady at 3.5% to 3.75%, marking a second consecutive pause amid economic uncertainty driven by geopolitical tensions in the Middle East. Rising energy prices due to the conflict between the U.S., Israel, and Iran have intensified inflationary pressures, while recent economic data showed unexpected job losses and higher wholesale inflation. Federal Reserve Chair Jerome Powell is expected to provide further guidance on monetary policy amid these challenges, with potential rate cuts later in 2026 remaining uncertain.
A federal judge dismissed grand jury subpoenas targeting Federal Reserve Chair Jerome Powell, ruling they were intended to pressure him rather than investigate legitimate criminal conduct. The investigation, led by U.S. Attorney Jeanine Pirro, focused on Powell’s testimony about a costly Federal Reserve renovation project but was criticized as politically motivated, especially given President Trump’s public attacks on Powell for resisting interest rate cuts. The ruling blocks the subpoenas, prompting plans for an appeal from the Justice Department, while some lawmakers welcomed the decision as a check on a weak investigation.