Stay informed with free updates

Simply sign up to the US inflation myFT Digest — delivered directly to your inbox.

US inflation fell to 3.4 per cent in April, in line with economists’ expectations, prompting investors to increase their bets on Federal Reserve interest rate cuts this year.

The consumer price data released by the US labour department on Wednesday compared with a 3.5 per cent annual rise in consumer prices in March.

Before the report, traders had bet on between one and two rate cuts this year, starting in November. But in its immediate aftermath, they priced in two full cuts by December, according to Bloomberg data.

US bond yields dipped and stock futures also rose after the data release. 

The two-year Treasury yield, which moves with interest rate expectations, dropped to 4.71 per cent, its lowest level since early April.

The figures come a day after Fed chair Jay Powell warned the central bank may have to maintain high interest rates for longer as it struggles to tame persistent inflation.

With less than six months to go before the US election, high inflation has hit President Joe Biden’s poll ratings on the economy.

According to Wednesday’s figures, core consumer prices — which strip out volatile food and energy costs — rose by 3.6 per cent last month compared with last year. On a monthly basis, the core consumer price index rose by 0.3 per cent in April, compared with 0.4 per cent in March.

This is a developing story.

Target confirmed that it won’t be carrying its LGBTQ+ merchandise for Pride month this June in some stores after the discount retailer received backlash last year. Here, Pride month merchandise is displayed at a Target store in Nashville, Tenn, in May 2023.

George Walker IV/AP

hide caption

toggle caption

Advertisement

George Walker IV/AP

Target confirmed that it won’t be carrying its LGBTQ+ merchandise for Pride month this June in some stores after the discount retailer received backlash last year. Here, Pride month merchandise is displayed at a Target store in Nashville, Tenn, in May 2023.

George Walker IV/AP

Target says it will no longer sell its 2024 Pride Month collection in all of its stores following last year’s conservative backlash over its LGBTQ+-themed merchandise.

The retail giant said in a press release last week that it plans to offer its collection of products to celebrate Pride Month — including adult clothing and home decor — during the month of June both online and in “select stores,” depending on “historical sales performance.”

In a statement to NPR, a spokesperson for the retailer says it is committed to supporting the LGBTQ+ community not only during Pride Month but year-round.

The retail giant says it will continue to offer benefits and resources for the community and its more than 400,000 employees, adding that the company will have a presence at local Pride events near its Minneapolis headquarters.

For years, Target has carried Pride-themed merchandise in its stores — including clothes, cups, champagne, accessories and even pet costumes.

But last year, the retailer faced heavy criticism after it announced plans to remove some of its Pride Month merchandise from store shelves following a backlash against the products — including threats to employees’ safety.

“Given these volatile circumstances, we are making adjustments to our plans, including removing items that have been at the center of the most significant confrontational behavior,” the retailer said in a previous statement addressing the backlash.

At the time, when asked which items were removed and whether security was being increased at its stores, Target not respond to NPR’s inquiry.

Human Rights Campaign President Kelley Robinson said in a statement to NPR that Target’s decision to limit its Pride Month merchandise this year is “disappointing,” saying the move “alienates LGBTQ+ individuals and allies at the risk of not only their bottom line but also their values.”

“Pride merchandise means something. LGBTQ+ people are in every zip code in this country, and we aren’t going anywhere. With LGBTQ+ people making up 30% of Gen Z, companies need to understand that community members and allies want businesses that express full-hearted support for the community. That includes visible displays of allyship.”

News of Target’s scaled-back efforts for Pride Month comes as the FBI and the Department of Homeland Security issued a warning on Friday that foreign terrorist organizations may potentially target LGBTQ+ events and venues during Pride Month in June.

The joint statement does not discuss any specific threats or intelligence suggesting that a specific event, celebration or individuals are subject to being targeted.

NPR’s Joe Hernandez contributed to this report.

Unlock the US Election Countdown newsletter for free

The stories that matter on money and politics in the race for the White House

The Biden administration has told Congress it plans to send a $1bn package of military aid to Israel despite US opposition to the Israeli military’s plans for a full assault on Rafah, the city in southern Gaza.

The move by the White House comes after the US paused one shipment of 2,000-pound bombs to Israel over concerns about their use in densely populated areas of Gaza, which risks further increasing the Palestinian civilian death toll.

While that step marked the first time Biden had withheld weapons in an effort to restrain Israel’s military conduct since the war with Hamas began in October, the $1bn package in the works shows that Washington is not seeking to restrict its arms supply to Israel more broadly.

The signal from the Biden administration that it wanted to proceed with the $1bn weapons package was conveyed this week, according to a congressional aide. It is expected to include mostly tank ammunition and tactical vehicles.

“We are continuing to send military assistance, and we will ensure that Israel receives the full amount provided in the supplemental,” Jake Sullivan, Biden’s national security adviser, told reporters on Monday, referring to $95bn foreign security aid bill for Ukraine, Israel and the Indo-Pacific enacted last month.

“Arms transfers are proceeding as scheduled,” another US official said on Tuesday.

The state department did not immediately respond to a request for comment.

The Wall Street Journal first reported the Biden administration’s plans for a new $1bn weapons transfer to Israel.

Biden decided to freeze the transfer of some of its most lethal bombs as it sought to deter the Israel Defense Forces from a full assault on Rafah, the city in southern Gaza where more than 1mn Palestinians are estimated to be sheltering. The US is also seeking to finalise a temporary ceasefire deal and secure the release of hostages held by Hamas.

The state department last week warned that US-made weapons might have been used in the conflict in a way that violated humanitarian rights.

Israeli Prime Minister Benjamin Netanyahu reacted with defiance to Biden’s arms suspension, saying Israel would “stand alone” in the absence of support form the US, its closest ally.

While some Democrats were relieved to see Biden make more aggressive use of US leverage over Israel, the president also faced a backlash from lawmakers within his party who were upset about the move, including Jacky Rosen, the Nevada senator, and John Fetterman, the Pennsylvania senator.

Rosen said the US needed to provide Israel with “unconditional security assistance”.