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Top headlines
Lead story
Rising gas prices aren’t just upending Americans’ driving habits and summer travel plans. They’re also seeping into the broader economy. That was the takeaway of key price data released yesterday, the last inflation report before the Federal Reserve’s policymaking committee meets under the new leadership of Kevin Warsh in mid-June.
The Fed’s chief job is to combat inflation, and the new data, known as the Personal Consumption Expenditures Price Index, offered a mixed but uncomfortable picture. The month-to-month rise was softer than expected, but it posted a 3.8% jump from a year earlier, the fastest pace since 2021. A less volatile index that excludes food and energy increased by 3.3%.
Economists D. Brian Blank of Mississippi State University and Brandy Hadley of Appalachian State University explain how higher energy costs cascade across the economy, into shipping costs, airline fares, food production – not to mention business profit margins and consumer psychology.
Incoming Fed chair Warsh faces a dilemma: He became an advocate for interest rate cuts after President Donald Trump nominated him, but the central bank may have to keep interest rates higher for longer, or even consider additional rate hikes, if inflation keeps ticking up.
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As the cost of gas stays high due to Middle East tensions, it’s spilling over into U.S. consumer spending more broadly and creating a conundrum for the Federal Reserve.
AP Photo/David Zalubowski
D. Brian Blank, Mississippi State University; Brandy Hadley, Appalachian State University
A key challenge for the Federal Reserve is that higher gas prices are inflationary, but they also reduce households’ spending power and dampen growth.
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International
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Thomas Adam, University of Arkansas
The author of a book chronicling the evolution of the global game explores the origins of association football.
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Science + Technology
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Carrie McDonough, Carnegie Mellon University
Your body likely contains an accumulation of various PFAS types, making it difficult to trace them to their sources.
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Gideon Yoffe, Weizmann Institute of Science
Future missions may be able to take only a small, damaged sample from space back to Earth. A simple analysis tool could help determine whether its contents suggest the presence of life.
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Education
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Ingrid A. Nelson, Bowdoin College
A series of racist costume parties at Bowdoin shows the contradiction colleges have to navigate – encouraging open, reasoned debate, while creating a safe campus for all students.
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Huaying Wang, Cleveland State University
After my niece died by suicide, I began researching how Chinese immigrant families feel about their children’s mental health and why they often avoid care.
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Economy + Business
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Chloe N. East, University of Colorado Boulder; Elizabeth Cox, University of Colorado Boulder
Contrary to the belief that an immigration crackdown would lead to more jobs for US-born workers, ICE enforcement hasn’t produced economic gains for Americans.
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Health + Medicine
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Melanie Cree, University of Colorado Anschutz
Polycystic ovary syndrome is an inaccurate name for a condition that affects millions of people worldwide. Its new name can help address missed diagnoses and fragmented care.
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Politics + Society
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Dulce Suarez, Florida International University
The timing of the offer was thorny because it coincided with the US indictment of former Cuban President Raúl Castro.
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Julia Bowling, City University of New York
Many jails and prisons are dependent on incarcerated labor to keep costs low.
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