With inflation well above the Federal Reserve's target, largely as a result of the spike in oil prices due to the war in Iran, President Donald Trump's administration has eased its public pressure on newly installed Fed Chair Kevin Warsh, signaling greater patience after the central bank held interest rates steady.
The shift in tone comes after the Bureau of Economic Analysis reported Thursday that the Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation measure, rose 4.1% in May from a year earlier. Core PCE inflation, which excludes volatile food and energy prices, increased 3.4%, underscoring persistent price pressures despite easing fuel costs in recent days.
