No quick cuts

For those holding out hope the US Federal Reserve would start dropping interest rates later this month, the most recent inflation data surely dashed those expectations. The Fed’s preferred gauge of underlying inflation rose in January at the fastest pace in almost a year. The uptick highlights the bumpy road to fully containing price pressures, especially amid the backdrop of a robust labor market, strong growth and a resilient American consumer. It also underscores the central bank’s oft-repeated stance that it’s in no rush to drop rates, concerned that loosening policy too soon could reignite some price pressures. The situation is similar in other countries and regions including Europe, where inflation eased less than anticipated last month and officials also exhibited a cautious approach to rate cuts.

Still, it’s important to take a moment and reflect on the economic hurdles the world has had to overcome or continues to endure—from the pandemic to war—and the progress made. Most central banks have walked a fine line of pushing rates higher to bring down inflation—but not so high as to trigger a recession. Finance chiefs from the G20 this week cited a growing chance of a soft landing for the global economy as inflation comes to heel, a powerhouse US underpins growth and fiscal stimulus flows in China. Of course, plenty of risks remain, from fear of deflationary malaise to a widening conflict in the Middle East.

Even with a strong economy, US President Joe Biden, 81, faces a perception problem as he seeks a second term. Many swing-state voters describe him as too old, according to a new poll. And Donald Trump, who at 77 is only four years younger, is seen as too dangerous, a majority of those surveyed said. When it comes to money, though, Biden has amassed a huge stockpile compared to his likely rival, who is bleeding cash to fight numerous prosecutions and lawsuits—and is on the hook to pay a combined $540 million in damages.

Thousands of Russians defied the Kremlin to publicly mourn Russian opposition leader Alexey Navalny, who died in prison last month. Vladimir Putin, who Biden blames for Navalny’s death, this week warned NATO risks a nuclear conflict if it sends troops to Ukraine. The threat came after French President Emmanuel Macron refused to rule out the possibility. Kyiv, for its part, warned that Russian forces may break through its defenses by the summer unless it gets more ammunition. It’s also now employing artificial intelligence—a growing trend as AI warfare expands.

Scores of Palestinians were killed and injured during an outbreak of violence in which Israeli troops opened fire near a convoy of food trucks attempting to deliver humanitarian aid to desperately hungry residents of northern Gaza. Israel denied its forces shot at the crowd. Biden said he remains hopeful for a temporary pause in the Israel-Hamas war, but said the aid convoy deaths complicate those talks. On Friday he pledged the US will airdrop aid to Gaza. A Saudi-led group of Arab states is urging the US and its allies to persuade Israel to consider a renewed plan for Palestinian statehood that they say will de-escalate tensions. The aid convoy deaths “should be the imperative that drives Israel and Hamas to an immediate, if temporary cease-fire,” Marc Champion writes in Bloomberg Opinion.

Global warming’s countless deleterious effects also include making food harder to grow. As populations continue to rise, what humans plant, where they plant it and how they harvest and prepare it are increasingly critical issues when it comes to adapting to climate change. In this week’s episode of the Bloomberg Originals series An Optimist’s Guide to the Planet, host Nikolaj Coster-Waldau introduces us to strategies aimed at feeding humanity while doing less damage to the planet.

Apple scrubbed a decade-long effort to build an electric vehicle, abandoning one of the most ambitious projects in the company’s history. The disclosure, made internally, came as a surprise to the nearly 2,000 employees working on the project. BYD, the world’s biggest EV seller, debuted its most expensive car, a 1.68 million yuan ($233,450) high-performance electric supercar.

Tennis legend Maria Sharapova started building a nine-figure empire while still on the court. The athlete-turned-businesswoman shares her wisdom on the first episode of The Deal with Alex Rodriguez and Jason Kelly, a Bloomberg Podcasts-Bloomberg Originals production hosted by the former New York Yankees superstar and veteran Bloomberg correspondent. The new series will pull back the curtain on how the brightest lights in sports, entertainment and business sealed their biggest deals, and the ones that got away.

Get Bloomberg’s Evening Briefing: If you were forwarded this newsletter, sign up here to get it every to get it every Saturday, along with Bloomberg’s Evening Briefing, our flagship daily report on the biggest global news.

Bloomberg Technology Summit: Led by Bloomberg Businessweek Editor Brad Stone and Bloomberg TV Host and Executive Producer Emily Chang, this full-day experience in downtown San Francisco on May 9 will bring together leading CEOs, tech visionaries and industry icons to focus on what’s next in artificial intelligence, the chip wars, antitrust outcomes and life after the smartphone. Learn more.