Inflation Jumps to 3.8%, Forcing Fed to Delay Rate Cuts

US inflation surged to 3.8% in April from 3.3% in March—nearly double the Fed's 2% target. The monthly jump of 50 basis points (0.5 percentage points) signals the Fed will hold rates steady longer than markets expected. Without easing soon, borrowing costs stay elevated through summer, pressuring anyone planning mortgages or loans.