US Core Inflation Hits 3.4%, 3-Year High
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- Core inflation hit 3.4% in May, reaching a 3-year high and pressuring the Federal Reserve to raise rates as the election nears, per Politico's framing.
- Headline inflation topped 4% in May and mortgage rates climbed, though CNN's headline counters that 'the worst may be over.'
Why it matters: With core inflation at a 3-year high of 3.4% and headline inflation above 4%, the Federal Reserve faces mounting political and economic pressure to act before the November election. The mortgage rate climb directly raises borrowing costs for homebuyers, and the election-near timing makes the Fed's next rate decision unusually consequential for voters already feeling housing pain.
