US inflation jumps to 3.8% as energy costs surge from Iran war

US inflation surged to 3.8% in April, the highest level since May 2023, driven primarily by surging energy costs and a rise in grocery prices. The Bureau of Labor Statistics reported that almost half of the increase was due to higher energy prices, while housing and food costs also contributed. This development makes it less likely the Federal Reserve will cut interest rates this year, according to investment manager Isaac Stell. The incoming chair of the Federal Reserve, Kevin Warsh, is expected to adopt a more conservative approach given the current inflation situation.