May consumer prices climbed 4.2% annually—the highest spike since early 2023—driven largely by spiking gas prices that have intensified affordability concerns across the country [UPI, PBS]. The uptick significantly dims prospects for Federal Reserve rate cuts, as inflation continues to outpace the central bank's 2% target [NYT].

President Trump weighed in on the figures Wednesday, saying he "loves the inflation," a striking stance that underscores tensions between his administration's policies and economic headwinds [The Hill].

Meanwhile, Trump signed a reconciliation package into law funding immigration enforcement, following the House passage of ICE and Border Patrol funding earlier this week [The Hill]. The move marks a major legislative win on a core administration priority.

On the international front, the U.S. and Iran continued their tit-for-tat strikes following an Apache helicopter attack, keeping tensions elevated despite earlier ceasefire discussions [CBS News]. Separately, China is recalibrating its North Korea strategy amid nuclear silence that's reshaping regional balance [NPR], while Ukraine struck a key Russian military plant in ongoing operations [UPI].

In election news, Democrat Graham Platner secured his Maine Senate primary nomination despite controversy, with Democratic establishment figures reluctantly coalescing behind him [Politico]. A Trump-backed candidate won the GOP primary in Nevada to replace retiring Rep. Mark Amodei [Politico].

Also developing: Bill Gates addressed his controversial connection to Jeffrey Epstein, stating he hopes a forthcoming interview will provide "justice to survivors" [PBS].