Fed's preferred inflation index hit 4.1% in May amid the war with Iran

Inflation has hit a three-year high, with the Federal Reserve's preferred measure, the personal consumption expenditure index, rising to 4.1% in May. This surge comes amid geopolitical tensions with Iran, which likely added to economic pressures. Such a significant inflation rate could impact Federal Reserve decisions on interest rates, potentially leading to higher borrowing costs for consumers and businesses. This rise in inflation underscores the challenges facing policymakers as they navigate economic stability with global uncertainties.