US consumer prices accelerated at their fastest pace in more than three years during May, with the Consumer Price Index climbing to a new peak as the ongoing conflict in Iran continued to drive up energy costs.
President Donald Trump publicly welcomed the latest data, which showed annual inflation climbing to 4.2%, a three-year high.
When asked if he was concerned about the acceleration, Trump told reporters, "No, I love it.
When asked if he was concerned about the acceleration, Trump told reporters, "No, I love it...
I love the inflation." The remarks underscore the administration's explicit tolerance for the current price environment, even as energy costs linked to the conflict in Iran continue to feed through to consumer baskets.
Markets will now assess whether this political stance alters the Federal Reserve's trajectory or simply reflects a willingness to absorb short-term price pressures.