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April Inflation 3.8% Delays Fed Cuts, Trump Shrugs

5/28/2026

33 8 Full Breakdown

Summary

Story summary

Prices for groceries, clothing, electricity and other goods rose in April, showing inflation spreading beyond fuel.
PCE index rose 3.8% YoY in April, highest since May 2023, per U.S. Commerce Department.
The Federal Reserve (Fed) may postpone rate cuts this year because inflation stays above the 2% target.
President Donald Trump called the recent gasoline-price rise “peanuts,” saying personal finances do not affect Iran-conflict decisions.

History

Historical Context

In 1979 President Jimmy Carter named Paul Volcker Fed chairman; he raised the federal funds rate from about 11% to a 20% peak by June 1981 to curb inflation that hit 13.5% in 1980. The tightening sparked a recession but drove inflation below 3% by 1983. Today the Fed’s caution over a 3.8% YoY PCE rise mirrors that 1980 balance-of-price-stability challenge.

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Story summary

Prices for groceries, clothing, electricity and other goods rose in April, showing inflation spreading beyond fuel.
PCE index rose 3.8% YoY in April, highest since May 2023, per U.S. Commerce Department.
The Federal Reserve (Fed) may postpone rate cuts this year because inflation stays above the 2% target.
President Donald Trump called the recent gasoline-price rise “peanuts,” saying personal finances do not affect Iran-conflict decisions.

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