Inflation rate inches down toward 2%
Inflation fell 0.2 percentage points to 2.1% in April, a noteworthy dip because it's now very close to the Federal Reserve's goal.
The Fed has had a longstanding battle with stubborn inflation, which began its rage soon after the nation climbed out of the pandemic. At one point, in June 2022, inflation rose as high as 9.1%.
The inflation rate ebbed and flowed throughout 2023 and 2024, forcing the Fed at different points to raise its federal benchmark rate. All the while, Fed Chairman Jerome Powell said he was aiming to ease the economy into a soft landing from the pandemic and bring inflation to a consistent 2%.
Powell released a statement this week saying he met with President Donald Trump on Thursday and the two spoke about economic developments, including growth, employment and inflation. Powell and Trump did not talk about monetary policy, the statement read.
Personal income in the US increases
Americans grew their personal income by 0.8% to $210.1 billion in April, according to a report from the U.S. Bureau of Economic Analysis. Consumer spending rose by $47.8 billion or 0.2%.
The report also found that Americans' total disposable income grew to $189.4 billion. U.S. consumers had $1.12 trillion socked away in personal savings, the bureau's report found. Money spent on housing, including utilities, led expenditures in April at $24.7 billion, according to the report.