President Donald Trump’s hand-picked nominee for Federal Reserve Chair, Kevin Warsh, took over from Jerome Powell on Friday, May 22 — and he’s landed in the hot seat. The Wall Street Journal calls the situation — replete with an ongoing war, tariffs and other inflationary pressures — “a dangerous brew (1).”

For the rest of 2026, models from forecasting companies like Trading Economics anticipate an inflation rate of about 3.5% through the middle of the year. After that, it may decline to around 3%.

The recent surge in inflation is likely to get worse over the next several months, according to a survey Friday.

Value stocks tend to outperform in periods when inflation is rising, Ned Davis Research wrote in a client note.

U.S. consumer prices rose in April, fueled by a spike in energy prices caused by the Iran war.

Consumers faced escalating prices in March as the Iran war sent oil soaring and created a new level of challenges for the Fed.

The new CPI report showed inflation in April surged to the highest rate since 2023.

Federal Reserve officials’ concerns about inflation being stoked by the Iran war intensified last month, with a growing number of them saying the central bank should lay the groundwork for a possible rate hike,

The latest I-bond rate is 4.26%, up from 4.03%. Experts say they offer inflation protection without principal risk.