Inflation creeps up in April; ‘Crunch’ time in debt ceiling talks

A measure of inflation that is closely tracked by the Federal Reserve increased in April

WASHINGTON (AP) — A key index of U.S. prices ticked higher in April, and consumer spending rebounded, a sign that inflationary pressures in the economy remain high. The index, which the Federal Reserve closely monitors, showed that prices rose 0.4% from March to April. That was much higher than the 0.1% rise the previous month. Measured year over year, prices increased 4.4% in April, up from 4.2% in March. The year-over-year figure is down sharply from a 7% peak last June but remains far above the Fed’s 2% target. The report also showed that despite rising prices, consumers remain buoyant. Their spending jumped 0.8% from March to April, the biggest increase since January.


‘Crunch’ time in debt ceiling talks, as McCarthy and Biden reach for a deal with deadline looming

WASHINGTON (AP) — House Speaker Kevin McCarthy and debt ceiling negotiators have hit “crunch” time as they strain to make a deal with the White House to raise the nation’s debt limit, avert default and cut federal spending. McCarthy said Friday there is still more work to do. Negotiators are racing for agreement this weekend. As soon as June 1, Treasury says it could run short of funds. A federal default on the national debt could send the economy into chaos. The budget flow isn’t the only hang-up. One thorny issue is a Republican demand opposed by Democrats for stiffer work requirements on people who receive government aid. Any compromise needs support from both Democrats and Republicans to pass in Congress.