CPI Falls to 4.0% -- The Consumer Price Index fell to an annual rate of 4.0% in May, down from 4.9% in April, the Labor Department reported Tuesday. Prices were up 0.1% on a monthly basis, with highest increase for shelter, followed by used cars and trucks, according to the department’s Bureau of Labor Statistics.

Food prices were up 6.7% on an annual level, offset in part by an 11.7% drop in energy prices. The CPI for all items less food and energy was +5.3% in May.

Most economists believe the Federal Reserve, which holds its latest regular meeting Tuesday through Thursday will forego an interest rate increase for the first time in about two years. 

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Truce for McCarthy and Freedom Caucus – Last week’s disagreement between Speaker Kevin McCarthy (R-CA) and “conservatives” dominated by the Freedom Caucus, which clogged up legislation in the House is over for now, Roll Call reports. “Members of the rebel bloc made it clear” Monday “it may not be the end of trouble” for McCarthy. 

There were even whispers last week of the possibility of a motion to vacate, in which one representative can call for a vote that would recall the speaker. The brouhaha stemmed from Freedom Caucus members who objected to what they saw as a debt ceiling deal favoring President Biden. Last week, the hard-right bloc blocked votes on bills otherwise favorable to them, including one that would prevent regulation or banning of gas stoves. 

Trouble ahead: The MAGA/Freedom Caucus bloc reopened the House floor to action this week in exchange for renegotiating the “power-sharing” agreement they worked out with McCarthy to give him the speaker’s gavel, Rep. Matt Gaetz (R-FL) told reporters Monday. Short of unspecified “progress” Gaetz said, “perhaps we’ll be back here next week.”

Why the quote marks?: We put “conservatives” in quotes, above, because we presume most, if not all, 222 House Republicans consider themselves leaning right. The Freedom Caucus currently counts 46 members, a bit more than one-tenth the size of the House membership.

--Compiled and edited by Todd Lassa