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The combination of forces bearing down on the economy spells trouble for Republicans in the midterm elections.
President Donald Trump boards Air Force One on Friday at Joint Base Andrews, Maryland. | Alex Brandon/AP
Inflation is running hotter than at any point since President Donald Trump returned to office, and the economy grew at a slower pace in the first quarter than previously estimated, the latest disappointing news for the administration on the issue that’s at the top of voters’ concerns.
The Commerce Department on Thursday reported that the personal consumption expenditures index — the Federal Reserve’s preferred inflation gauge — climbed at an annual rate of 3.8 percent in April, driven by surging energy costs. The so-called core PCE, which removes volatile food and energy costs, ticked up at an annual rate of 3.3 percent. The department also downshifted its estimate for gross domestic product growth to 1.6 percent from 2 percent for the first three months of the year.
