The Dictatorship

Inflation increases stretch into 3rd month with gas prices driving costs higher

Published

3 weeks ago

June 11, 2026

Inflation increases stretch into 3rd month with gas prices driving costs higher

WASHINGTON (AP) — Rising gas prices pushed inflation to its highest level in three years last month, a headache for the Federal Reserve and a potential political challenge for the Trump administration as midterm elections near.

Consumer prices rose 4.2% in May from a year earlier, the Labor Department said Wednesday, up from 3.8% in April and the third straight monthly increase. On a monthly basis, prices rose 0.5% last month, after big gains of 0.6% in April and 0.9% in March.

Prices have now risen faster than wages for several months, pressuring many Americans’ finances and causing consumers to take a decidedly dim view of the economy. Families are dipping into savings to maintain their spending, and more people are falling behind on their credit card bills. Large retailers say they have also noticed changes in customer behavior, like buying smaller amounts of gas during visits to the pump.

As the daytime high temperature soars into the 80s, a United States Postal Service postman keeps cool by standing in the shade of a gasoline station sign posting the per-gallon prices for the various grades of fuel available Thursday, June 4, 2026, in central Denver. (AP Photo/David Zalubowski)

Inflation is now well above the Federal Reserve’s 2% target, which it has surpassed for more than five years. New Fed chair Kevin Warsh will preside over his first policy meeting next week, when the central bank is expected to keep its key interest rate unchanged. But the Fed is also likely to change the statement it issues after each meeting to remove a suggestion that its next move could be to lower rates. With inflation proving stubborn, financial markets expect the Fed could instead raise rates by the end of the year.

When the Fed lifts rates, over time it can make mortgages, auto loans, and business borrowing more expensive.

Outside energy costs, price increases last month were not as dramatic, a sign that sharply higher inflation hasn’t yet spread throughout the economy. Should the Iran was end and oil and gas prices decline, headline inflation could begin to cool. Gas prices have fallen this month, though they remain elevated.

Excluding the volatile food and energy categories, core prices rose at a more modest pace. On a monthly basis, they climbed just 0.2%, down from a 0.4% gain in April. Compared with a year ago, they have rise 2.9%, up from 2.8% in April.

President Donald Trump praised the inflation report in comments to reporters Wednesday, saying, “the numbers were great” and “I love it.”

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He said the inflation data was good because it showed energy prices were a huge driver of rising costs — the government said they accounted for more than 60% of the monthly increase — and he suggested inflation would ease “as soon as this war is over.”

However, the U.S. launched more airstrikes against Iran on Wednesday, and Trump said more were coming, as Tehran fired back at countries in the region.

Crude prices shot back above $90 a barrel on the violent exchange of fire.

Still, many goods and services rose in price last month: Clothing costs increased 0.3% and are 4.8% more expensive than a year ago. Airline fares, pushed higher by pricier jet fuel, jumped 2.7% just in May and are nearly 27% higher than a year ago. Electricity prices rose 0.6% in May and are up 5.9% in the past year.

Grocery prices were tamer in May compared with previous months, rising just 0.1% from April. Still, they are up 2.7% from a year ago and have risen sharply since the pandemic.

“I don’t think we’re anywhere near out of the woods yet,” Omair Sharif, chief economist at Inflation Insights, said. Price increases “were stronger under the hood.”

When the cost of nearly everything is rising, economists call it inflation. Even if paychecks also rise, inflation typically leads people feel like it’s harder to make ends meet, and it often becomes a major political issue.

Sharif and other economists point out that the cost of services, including child care, home health care, and dental services are still rising much more quickly than is consistent with the Fed’s 2% inflation target.

Bill Adams, chief U.S. economist at Fifth Third Commercial Bank, attributed some of the gain to a crackdown on immigration, which has likely forced many employers in those industries to raise wages.

Inflation had been cooling before Trump imposed sweeping tariffs in April 2025, which lifted the costs of many goods. Prices have since surged after the Iran war made oil and gas more expensive, making affordability a key political issue.

Small businesses are struggling with higher costs, some of which they are passing on in the form of higher prices. Others have slowed hiring or even cut jobs.

Beth Benike, the founder of Oronoco, Minnesota-based Busy Baby, said her small company was hit hard by tariffs last year and is now struggling with higher shipping costs stemming from more expensive fuel. The company sells silicon placemats and toys that attach to high chairs and strollers.

Sales have declined as inflation has worsened, and Benike recently reduced one full-time employee to part-time hours. She said that more of her customers are now grandparents of newborns, rather than the parents.

“Grandparents have a little more disposable income than the generation that’s having babies,” she said.

Gas prices rose in May because of Iran’s closure of the Strait of Hormuz, which has choked off about a fifth of the world’s oil supply. Prices at the pump rose, on average, from about $4.04 in mid-April to $4.49 in mid-May, according to the Energy Information Administration.

They have since fallen back to $4.16 on average nationwide, according to AAA, which could lead to a cooler inflation reading in June. That doesn’t mean gas prices are not prominent in the minds of most Americans. A gallon of gas has hovered above $4 a gallon since March.

Major retail chains have discounted prices to accommodate customers who are watching their spending more closely.

Dollar General is expanding the number of items that cost $1 or less, including frozen food. The shift has come with shoppers swapping out favored retailers for dollar stores.

“When that (gas) price hits that $4 mark and then crosses it and then sustains for a while, you start to see that trade-in come in and you start to see that our core customer needs us most,” Dollar General CEO Todd Vasos said this month.

Tomatoes await customers on the shelves of a supermarket in New York on Tuesday, May 26, 2026. (AP Photo/Matt Sedensky)

Amber Greenwell, executive director of the America First Credit Union’s charitable foundation, based in Ogden, Utah, says the cost of gas, housing and groceries have risen sharply in her state and much of the west in the past year. Her organization organizes food and diaper drives in the six states where the credit union operates.

“There is substantial growth in families who need more food resources as well as diaper resources,” she said.

Stubbornly high inflation has shifted the debate among Fed policymakers, who had signaled at the start of the year that they were inclined to cut their key rate twice more this year. Now, more officials are saying they expect the Fed’s next move will likely be a hike rather than a cut.

Despite higher inflation, the job market appears to be improving, with hiring increasing to a healthy level in Mayand the economy is still growing. These positive signs suggest the Fed doesn’t need to cut rates to stimulate growth and hiring. They also signal that the Fed’s rate isn’t so high that it is weighing on the economy. Yet some officials want rates to cool growth a bit, because that can bring down inflation.

___

AP Writers Josh Boak and Anne D’Innocenzio contributed to this report. D’Innocenzio contributed from New York.

The Dictatorship

Vance contradicts Trump about bipartisan cooperation on housing bill

Published

6 hours ago

July 1, 2026

Blue Light Newsroom

Vance contradicts Trump about bipartisan cooperation on housing bill

As a rule, JD Vance seems to go out of his way to say whatever Donald Trump wants him to say, but from time to time, contradictions emerge between the president and the vice president.

Take the recently passed housing bill, for example, which arrived at the White House earlier this week.

As part of an interview Tuesday night with Fox News’ Laura Ingraham, the Ohio Republican said, “Frankly, Laura, I would love it if Democrats were willing — you know, not that they will agree with Republicans all the time — but if they were willing to work with us on lowering housing prices, on lowering gas prices, on actually making the lives of American citizens better. You know, we could have some real bipartisan compromise. That’s not what they’re talking about.”

I realize the vice president must be very busy, but it really isn’t that difficult to keep up with the basics of current events. In this case, when Vance said Democrats are unwilling to work with Republicans on priorities such as “lowering housing prices,” he turned reality on its head. It was literally last week when Democrats offered unanimous support for a bipartisan bill to address housing prices — legislation that members such as Democratic Sen. Elizabeth Warren of Massachusetts helped to write.

Democrats recognized that doing so would offer the GOP some election-season bragging rights, but Democrats did it anyway because they have prioritized governing and “actually making the lives of American citizens better” over partisan considerations.

But Vance didn’t just contradict reality; he also contradicted his boss.

Just one day before the vice president brazenly misled a national television audience, Trump was asked about the pending housing bill. “It’s very bipartisan; that means the Democrats like it,” the president saidwhile acknowledging that he hasn’t yet decided whether to sign it.

In other words, when Vance said policymakers “could have some real bipartisan compromise,” he seemed indifferent to the fact that we’ve already had some real bipartisan compromise — a detail that even Trump was willing to acknowledge a day earlier.

Whether the vice president will suffer for publicly contradicting the president remains to be seen.

Steve Benen is a producer for “The Rachel Maddow Show,” the editor of MaddowBlog and an MS NOW political contributor. He’s also the bestselling author of “Ministry of Truth: Democracy, Reality, and the Republicans’ War on the Recent Past.”

The Dictatorship

Trump made more than $1 billion in crypto ventures last year, financial disclosure shows

Published

6 hours ago

July 1, 2026

Blue Light Newsroom

Trump made more than $1 billion in crypto ventures last year, financial disclosure shows

Christmas. 1, 2026, 9:10 AM EDT

President Donald Trump reported more than $1.4 billion in cryptocurrency-related income in his latest annual financial disclosure released Tuesday, with digital assets emerging as the largest source of his personal earnings during his second term.

The 927-page disclosure, covering 2025 and filed with the U.S. Office of Government Ethics, shows Trump earned more than $500 million from World Liberty Financial, the cryptocurrency company he co-founded in 2024 with his sons, Eric Trump and Donald Trump Jr. He also reported another $635 million in income tied to sales of the $TRUMP meme coin.

Speaking with reporters Wednesday morning before leaving for events in North Dakota, Trump said that others choose his investments without his input.

“I’ve made a lot of money before I became president, and they invest my money, and I don’t talk to them,” he said. “So, I have many people… I don’t know what they call closed accounts or something. You put your money in, and that’s it. I don’t talk to them. They’re big institutions, and they run it.”

The president also earned hundreds of millions of dollars in income from several of his properties in 2025, including $122 million from Trump Doral, $77.5 million from Mar-a-Lago and $39 million from Trump Tower Chicago.

The filing lists more than $80 million in income from legal settlements with media companies including ABC, CBS, Meta, YouTube and X. Trump also reported at least $8.3 million in royalties from books and branded merchandise, including $4.7 million from Trump watches and more than $200,000 in royalties from the God Bless the USA Bible, a branded edition promoted in partnership with singer Lee Greenwood.

The disclosure illustrates a significant shift in Trump’s business portfolio. While his wealth has long centered on hotels, golf courses and commercial real estate, cryptocurrency has emerged as his largest revenue driver. Reuters previously estimated the Trump family has generated at least $2.3 billionin profits from crypto-related ventures since Trump returned to the presidency.

The report follows additional ethics disclosuresreleased in May showing hundreds of millions of dollars in securities transactions involving major U.S. companies and municipal bonds. At the time, the Trump Organization saidthose investments were managed by outside financial institutions through discretionary accounts and that neither Trump nor his family directed individual trading decisions.

Soorin Kim contributed to this report.

Ebony Davis is a breaking news reporter for MS NOW based in Washington, D.C. She previously worked at BLN as a campaign reporter covering elections and politics.

Soorin Kim is a White House producer with MS NOW.

The Dictatorship

GOP officials eye restrictions on pregnant travelers following Supreme Court ruling

Published

6 hours ago

July 1, 2026

Blue Light Newsroom

GOP officials eye restrictions on pregnant travelers following Supreme Court ruling

The ruling wasn’t as lopsided as many legal observers expected, but in Trump v. Barbara, the U.S. Supreme Court rejected the idea that a president can override the 14th Amendment to the Constitution with an executive order. Although the 5-4 ruling left in place a status quo that had existed for generations, much of the right did not respond well to the news.

Much of the outrage from conservatives was tiresome and predictable, but one element of the pushback to the high court’s ruling stood out, for unfortunate reasons.

A couple of hours after the decision was issued, Republican Rep. Lauren Boebert of Colorado argued by way of social media that the State Department “should immediately cease to give out visas to pregnant applicants.” Soon after, one of her colleagues went a step further by announcing plans for a legislative solution.

Republican Rep. Andy Ogles of Tennessee said Tuesday he’s moving forward with plans for legislation that he’s calling the Anchors Away Act, which would ban certain pregnant foreign women from entering the United States.

“So, I have a bill; it will be called ‘Anchors Away,’ which, look, if you’re not a U.S. citizen, if you’re not a green card holder and you have a child on U.S. soil, today, that child will be a U.S. citizen,” Ogles said in a video posted to social media. “Under my bill, under my legislation, we fix that. … So in short, what this bill does is, if you are a pregnant woman, you can’t come into this country. You got to be a citizen, be here, you have to be a green card holder. So if you’re pregnant and you don’t have one of those statuses, no admittance allowed,” he continued.

As HuffPost noted“The ‘anchor’ part of Ogles’ bill refers to the pejorative term, ‘anchor babies,’ used by many conservatives to describe children born in the U.S. to undocumented immigrants.”

The Tennessee Republican also took his pitch to Fox News. “Look, if you’re pregnant and you’re from a foreign nation, you know what?” Coal says. “It’s time for Congress to pass a law saying you can’t come here.”

And while Ogles and Boebert aren’t exactly known for their legislative prowess, even if the House were to pass such a measure, it would never clear the 60-vote threshold in the Senate.

As the day progressed, White House deputy chief of staff Stephen Miller also appeared on Fox News, and when asked whether the U.S. is prepared to start “banning pregnant women,” Miller didn’t say no, replying instead that there are “a lot of things” the Trump administration will take “a hard look” at.

On Wednesday morning, Homeland Security Secretary Markwayne Mullin also said the administration is prepared to “look at” restrictions on pregnant travelers to the U.S.

I won’t pretend to know what, if anything, will come of this, but I do have a question for proponents of these restrictions: How exactly would U.S. officials go about determining whether someone entering the country is pregnant?