Fed's Inflation Gauge Hits 3-Year High

The Federal Reserve’s preferred inflation gauge climbed again in May as the energy shock continued to filter through the broader consumer basket, the Bureau of Economic Analysis reported Thursday. 4% gain. 1% forecast and marking the highest reading since April 2023. 4%, matching estimates.

The report marks the third straight uncomfortable inflation print to land on the desk of new Fed Chair Kevin Warsh, bolstering investor bets on rate hikes. Money markets now price a near-certain 25-basis-point hike by October 2026, with a second increase expected by March 2027. This is a developing story…. Image: Shutterstock