U.S. Inflation Hits 8.6% — Highest Rate in 40 Years

U.S. Inflation Hits 8.6% — Highest Rate in 40 Years

The U.S. Bureau of Labor and Statistics released its Consumer Price Index for May, which showed inflation up 8.6% in the past twelve months. 

“Fed officials are watching for signs that inflation is cooling on a monthly basis as they try to guide price increases back down to their goal, but Friday’s report offered more reason for worry than comfort,” reported the New York Times. 

“Policymakers aim for 2 percent inflation over time using a different but related index, which is also sharply elevated. Central bankers are raising interest rates to make borrowing money more expensive, hoping to cool off consumer and business demand and give supply a chance to catch up, setting the stage for more moderate inflation,” NYT continued. 

GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST

As GoLocal reported earlier this week, there is growing noise in Washington, D.C. that U.S. Treasury Secretary Janet Yellen’s days are numbered -- and former Rhode Island Governor Gina Raimondo, who is sitting U.S. Commerce Secretary, is the leading candidate to replace her.

Yellen, a Brown University graduate, has been highly criticized for mismanaging the Biden administration’s response to inflation.

Read more here.