{"id":141604,"date":"2026-05-28T09:42:53","date_gmt":"2026-05-28T12:42:53","guid":{"rendered":"https:\/\/ubirataonline.com.br\/the-first-inflation-report-under-new-fed-chief-kevin-warsh-is-out-and-its-not-good\/"},"modified":"2026-05-28T09:42:57","modified_gmt":"2026-05-28T12:42:57","slug":"the-first-inflation-report-under-new-fed-chief-kevin-warsh-is-out-and-its-not-good","status":"publish","type":"post","link":"https:\/\/ubirataonline.com.br\/en\/the-first-inflation-report-under-new-fed-chief-kevin-warsh-is-out-and-its-not-good\/","title":{"rendered":"The first inflation report under new Fed chief Kevin Warsh is out \u2014 and it’s not good"},"content":{"rendered":"

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The first inflation report under new Federal Reserve chief Kevin Warsh<\/a><\/span> was released on Thursday, and it shows consumer prices in April were at their highest level in almost three years.\u00a0<\/p>\n

The personal consumption expenditures price index \u2014 the Fed’s preferred inflation measure \u2014 rose last month at an annual rate of 3.8%,<\/strong> the Commerce Department reported<\/a> on Thursday. That’s up from 3.5% in March and 2.8% from February.\u00a0<\/p>\n

Economists had expected April’s PCE report to show annual inflation rising to 3.9%, according to economists polled by FactSet.\u00a0<\/p>\n

Warsh is stepping in as Fed chief with a major challenge on his hands, given that inflation is flaring due to the impact of the\u00a0Iran war<\/a><\/span>\u00a0on energy prices. Earlier this year, the central bank had forecast one interest rate cut in 2026, a prediction that economists now say is growing less likely given the jump in fuel costs.<\/p>\n

Complicating his challenge is President Trump’s eagerness for the central bank to lower borrowing costs for consumers and businesses, which would boost economic growth.<\/p>\n

Some economists are now penciling in a possible rate hike later this year. There’s now a 40% probability that the Federal Reserve will hike rates at its December meeting, up from 3% at its June meeting, according to CME FedWatch, which bases its predictions on 30-Day Fed funds futures prices.<\/p>\n

\u2014This is breaking news and will be updated.<\/em><\/p>\n

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\n Edited by<\/p>\n

Alain Sherter<\/a>\n <\/p>\n<\/section>\n

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