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Gas price surge and inflation pinch American shoppers
3 hours ago•Source: AP News
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Bond Yields Ease on Peace Hopes Amid Iran Tensions
Treasury yields declined across the curve after the Memorial Day break as markets priced in potential Middle East peace talks despite fresh U.S. strikes on Iran. The 10-year yield fell to 4.485%, the 2-year to 4.057%, and the 30-year to 5.009%, with investors eyeing April’s PCE inflation data and Fed signals later this week.
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The Boomer Hold: How an Aging Generation Is Redrawing Work, Housing, and Leadership
Fortune argues that Baby Boomers, by dominating jobs, owning most large homes, and aging in top roles, suppressed wages and constrained housing for younger Americans for decades; as Boomers retire, a tighter labor market, housing shortages, and weak leadership succession threaten the economy and compel institutions to reinvent transitions.
Inflation Fears Push Bond Yields Higher, Raising Stakes for Fed
Bond yields climbed to multi-year highs on persistent inflation fears, with 30-year yields around 5.1%–5.2% and 10-year near 4.6%, signaling higher borrowing costs and suggesting the Fed may tighten further; the move is tied to energy-price shocks from the Iran conflict and broader geopolitical strain, potentially adding trillions to the federal debt if yields stay elevated, even as markets ride AI-spending optimism.
Oil Markets Swayed by Iran Tensions as Gas Prices Jump This Memorial Day Weekend
Oil prices climbed above $100 a barrel amid escalating Iran tensions and signals of new strikes, lifting the national average for regular gasoline to about $4.53 a gallon ahead of Memorial Day and fueling inflation worries as markets weigh geopolitical risk and its impact on energy costs and consumer budgets.
Trump Emphasizes Fed Independence as Warsh Takes the Chair
President Trump used Kevin Warsh’s swearing-in as Federal Reserve Chair to stress Fed independence, telling Warsh to “do your own thing” and avoid White House pressure, in a backdrop of a 3.75% federal funds rate, sticky inflation around the high end of its range, and a flat yield curve. Markets are pricing independence as a key driver of the rate path, leaving three big questions for Warsh: whether the data permits further cuts, whether the curve resolves, and whether independence holds if policy and politics diverge.
Warsh hints Greenspan-era style for future Fed leadership
The article notes that Kevin Warsh, a potential future Fed chair, suggests he may adopt a Greenspan-era approach to monetary policy, signaling a more flexible, growth-oriented stance rather than a strict, rules-based inflation target. If realized, this could influence rate guidance and market expectations as the Fed weighs balancing inflation with economic expansion.
Warsh Takes the Helm at the Fed as Inflation Looms
Kevin Warsh is sworn in as the Federal Reserve chair, taking charge of a divided central bank amid stubborn inflation; the ceremony, hosted at the White House, marks a rare transition as he pledges a reform-minded, independent approach to price stability and maximum employment, while Powell stays on the Board and markets eye possible rate hikes later this year.
Warsh Takes the Fed Helm Amid Inflation Hurdles and Policy Pressure
Kevin Warsh begins as Fed chair facing stubborn inflation, an energy shock, and political pressure to cut rates, while Fed governor Christopher Waller signals a hawkish shift, making near-term easing unlikely as inflation and inflation expectations remain elevated.
Warsh Sets a Cautious Course as Fed Faces Inflation Risk
Kevin M. Warsh was sworn in as Federal Reserve chair amid rising inflation and expectations the Fed may raise rates, not cut them, despite President Trump’s push for cuts. He emphasizes independence and a reform-minded approach—critiquing inflation measurement, embracing real-time data, and signaling a potential balance-sheet shrinkage to offset higher long-term rates if price pressures persist. With the labor market holding up and consumer spending buoyant, markets await the June dot plot as policymakers weigh how aggressively to respond.
Gas Pain Pushes US Consumer Confidence to Record Low, UMich Finds
The University of Michigan’s May reading shows US consumer sentiment at a record low of 44.2, driven by high gas prices and inflation; expectations for future inflation rose and pessimism is strongest among lower-income and less-educated Americans amid oil-price shocks and ongoing affordability concerns.
Record-high ground beef costs threaten Memorial Day grilling plans
Ground beef hits a record $6.90 per pound as tighter cattle supplies and strong demand push prices higher; price gains have reached 24% since January 2025, with USDA projecting further increases into 2026. The White House has floated tariff relief and imports to ease prices, while restaurants adjust menus and consumers face higher grilling costs.