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 “The Inflation Reduction Act”
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 U.S. said Iranian missiles and drones targeting Kuwait and Bahrain failed or were intercepted, while Kuwait reported a later airport attack that caused injuries and damage. Washington struck an Iranian ground control station on Qeshm Island as both sides disputed the status of ceasefire talks.
President Trump says preventing Iran from obtaining nuclear weapons is his top priority, dismissing concerns about the economic impact on Americans amid rising inflation and gas prices. Democrats and polls highlight widespread public dissatisfaction with his handling of the economy during the Iran conflict.
The U.S. added 178,000 jobs in March, exceeding expectations as the unemployment rate fell to 4.3%. Gains in health care, construction, and transportation contrast with concerns over wage growth, labor force participation, and rising energy costs amid the Iran conflict.
U.S. stocks fell sharply and oil prices surged after President Trump pledged continued strikes on Iran without outlining a ceasefire plan or reopening the Strait of Hormuz. The Dow dropped over 600 points as energy prices and inflation concerns rose.
House Republicans have proposed a bill that would provide $14.3 billion in emergency funding for Israel, paid for by rescinding the same amount of IRS funding from the Inflation Reduction Act. The bill has been met with criticism from Democrats, and the outcome of the vote in the full House chamber this week will determine the fate of the bill and the funding for Israel. The bill sets up a collision with the White House and Democratic-controlled Senate over how to support a key U.S. ally.
CMS has announced the first 10 prescription drugs to be subject to Medicare price negotiations under the Inflation Reduction Act, which is estimated to account for one-fifth of the program's total spending. This shift from the current system, which has been barred from negotiating drug costs, is expected to have a positive impact on the cost of prescription drugs for the 65 million people in the US covered by Medicare.