Will rising inflation in May force the Fed to change its strategy?
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US inflation probably inched higher in May, offering scant evidence of extensive tariff-related repercussions that the Federal Reserve expects to become more apparent later in the year. Ahead of the key figures on Friday and fresh off the Fed's decision this week to keep interest rates unchanged, Jerome Powell heads to Capitol Hill for two days of testimony in which he'll lay out the case, again, for the central bank's go-slow policy approach. The Fed chair is likely to emphasise that while rate cuts are possible this year, officials want more clarity on the economic impact of White House trade policy. Economists see the personal consumption expenditures price index excluding food and energy-the Fed's preferred gauge of underlying inflation-rising 0.1% in May for a third month. That would mark the tamest three-month stretch since the pandemic five years ago. US central bankers largely see the Trump administration's exp...