Surging debt interest costs forced the U.K. government to borrow more than expected in May. Finance minister Rishi Sunak remains under pressure to borrow even more as a slowing economy threatens to reduce tax revenues.—reuters.com

The Federal Reserve escalated its battle against inflation with a 0.75% interest rate hike. Consumer prices are up 8.6% from a year ago. By sharply raising interest rates, the Fed hopes to tamp down consumer demand.—npr.org

The clock is ticking for Congress to repair Social Security. Projections show funds will be depleted in 2035. A survey shows 81% of respondents support reducing benefits for high earners and 75% support raising the retirement age.—cnbc.com

The U.S. budget deficit could shrink this year as federal spending on Covid-19 aid slows and the economy rebounds. The federal deficit is expected to increase over the next decade. The Fed plans multiple interest rate hikes.—cnn.com

Stagflation represents the worst nightmare for the Fed. It puts the two parts of its mandate—full employment and stable prices—into direct conflict. The Fed will have a tough decision to make to control stagflation.—markets.businessinsider.com