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The latest PCE statistics released on May 28, 2026, indicated that US inflation has climbed to 3.8% year-over-year, marking the fastest increase since 2021, primarily due to the crisis in the Strait of Hormuz and the ongoing conflict with Iran. Nationally, gasoline prices have surpassed $4 per gallon, with some stations in California exceeding $6. Core inflation, which excludes food and energy, has also risen to 3.3%, suggesting that price pressures are extending beyond energy into areas like housing, utilities, and discretionary expenses. The Federal Reserve is confronted with challenging choices as the new chair gets ready for their inaugural policy meeting on June 16–17.

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00:00Americans are feeling it at the pump. And now in the grocery store, too. New government data
00:05released on May 28th showed U.S. inflation running at 3.8 percent year on year, the fastest pace
00:12since 2021. The driver is clear. The Strait of Hormuz crisis. Iran's closure of the waterway
00:19that handles 20 percent of the world's traded oil has sent gasoline above $4 per gallon nationally.
00:25In California, some stations are charging above $60. But this isn't just an energy problem anymore.
00:33Core inflation, which excludes food and energy, rose to 3.3 percent, meaning higher prices are
00:40spreading into housing, utilities, and everyday spending. New Fed chair Kevin Warsh faces his
00:46first policy meeting on June 16th and 17th, with both inflation rising and signs of economic
00:52slowdown emerging. The White House and Federal Reserve are now watching whether a potential
00:57Iran deal can reopen. The Strait and relieve pressure before the situation worsens for American households.
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