CNBC's Rick Santelli reports on the latest economic data to cross the tape.

Washington

Recent economic data indicates that core inflation increased to 2.7%, slightly higher than expected. Personal income fell by 0.4%, marking the first negative result since 2021, while personal spending and real spending also declined.

The core year-over-year inflation rate remains above the Federal Reserve's 2% target, suggesting persistent inflationary pressures. Treasury yields showed notable movement over the week, reflecting market reactions to the data and ongoing expectations regarding Federal Reserve policy.

Core inflation rate rose to 2.7% in May, personal income falls

Personal income and spending numbers for the May plus the Fed's favorite inflation gauge PCA, PCE data, Treasuries, Rick Santelli Let's do it Rick. Tell us what you got. Yes, May income spending and all the inflation numbers and there are surprises here. Personal income, which really has been quite strong throughout 2025 takes a bit of a hit here down four-tenths. We were looking for a number up three to four-tenths This would be the first negative number going all the way back to what? September of 21 and that's where we comp this to SEP of 21 when we were minus six-tenths. Now if we look at Spending, spending was down one-tenth We were expecting up one-tenth that equals where we started the year at down one-tenth to find a bigger negative number you're going in the way back machine to Feb of 21 Feb of 21 now if we look at real spending, of course It's going to take a bit of a ding question is how much down three-tenths? We're expecting this to be near unchanged. This would be the second negative number on real income spend Excuse me real spending We started out the year down half a percent before we really jumped up in March to up seven-tenths to somewhat negate it So down three-tenths would be comping to the very beginning of this year now to the inflation data if we look at the PCE on a month-over-month basis exactly as expected up one-tenth in the rearview mirror up 110 the best that we had this year was unchanged in March if we look at the year-over-year PCE we are at two point three exactly as expected in the rearview mirror 2.1 now becomes 2.2. So there is an extra tenth of heat in the rearview mirror now year-over-year Excuse me core numbers. These are probably the most important on the month-over-month core up two-tenths That's one-tenth hotter than expected One-tenth hotter than the rearview mirror and and it basically would come to Where we were in the beginning of the year February were up half a percent and finally two point seven That's the core year-over-year. I know Becky was talking about it earlier This is most likely what most are gonna really concentrate on It's one-tenth hotter at two point seven than we were expecting at two point six and in the rearview mirror There was an upgrade from two point five to two point six So there is a stickiness here and this stickiness has remained for quite a long time. We have made progress Things aren't really necessarily getting worse Although a couple of tents here and there on revisions But I guess the real issue to take a step back is it still doesn't look like 2% is in the crosshairs And that's the feds, you know amount that's their target for some of these numbers interest rates big moves on the week Not on the day at 426 right now in a 10-year. We're up to on the day, but on the week Remember that what we have in a 10-year right now. We closed last week at 438 we're at 425 426 and in the two-year we closed last week at 391 we're currently 327 at 372 373 so you can see there has been almost a 20 basis point move on the short end and the curve steepening Well that probably is because of this notion of a pre announcement on the Fed chairman

China’s Xi Jinping has welcomed Russia’s Vladimir Putin, India’s Narendra Modi and leaders from around 20 countries to the Shanghai Cooperation Organisation summit, a high-security gathering aimed at boosting Beijing’s influence and promoting "a multipolar world order."

Tianjin

Xi aims to show global south unity with Modi and Putin

Russia's Vladimir Putin is among a dozen leaders attending the regional security summit, which comes at a crunch moment in talks over his war on Ukraine, and for a summit that's demonstrating a strong show of unity among Global South leaders.

Beijing

Putin arrives in China for key regional security summit

Chicago Mayor Brandon Johnson detailed his plan Saturday to resist President Trump's threatened immigration crackdown in his city. CBS News has learned the Trump administration plans to intensify immigration enforcement in the city as early as next week.

Chicago

Chicago mayor pushes back on Trump's immigration crackdown

Russian strikes shook the Zaporizhzhia region in southern Ukraine overnight Friday, hitting a five-story apartment building, killing at least one person and injuring dozens more.

Zaporizhzhia

Russia continues assault on Ukrainian cities

For the first time since this week's deadly mass shooting at a Minneapolis church, which killed two young students and wounded more than a dozen people, a devastated community gathered Saturday at the site to attend Mass.

Minneapolis

Mass held at site of Minneapolis church shooting

The United States says it will not allow Palestinian Authority President Mahmoud Abbas to travel to New York next month for a United Nations gathering of world leaders, where several U.S. allies are set to recognise Palestine as a state.

New York

Middle East Conflict

U.S bars Palestinian leadership from attending UN

The Department of Homeland Security is preparing for an immigration crackdown in Chicago as early as next week, sources told CBS News. Illinois Gov. JB Pritzker blasted the Trump administration's plans.

Chicago immigration crackdown could happen next week, sources say

The Israeli military on Friday declared Gaza City a “dangerous combat zone” before a new offensive in the Palestinian enclave's largest city. Israel is moving forward with plans to seize Gaza City despite growing international pressure to end the nearly two-year conflict.

Tel Aviv-Yafo

Israel declares Gaza City a 'dangerous combat zone'

Palestinian Authority President Mahmoud Abbas has been blocked from attending the UN General Assembly in New York next month. That's as U.S. Secretary of State Marco Rubio has cancelled visas for the Palestinian delegation.

U.S. blocks Palestinian officials from attending UN general assembly

The death toll of a devastating Russian air assault in Kyiv earlier this week has been revised upward to 25. Now European allies suggest Russian President Vladimir Putin is playing U.S. President Donald Trump if he runs out the clock on Washington's peace efforts.

Paris

Ukraine Invasion

Macron says Putin 'played Trump' if Zelenskyy meeting isn’t set soon

The Trump administration is planning expanded immigration operations in Chicago next week, two Department of Homeland Security sources tell CBS News. Camilo Montoya-Galvez reports.

Trump planning immigration crackdown in Chicago next week: sources

Iran-backed Houthi Prime Minister Ahmed al-Rahawi was killed in Israeli airstrikes on Sanaa, according to Yemeni and Israeli reports. The strikes also targeted top military officials, including the group's defence minister.

Sana'a

Iran-backed Houthi PM killed in Israeli airstrikes on Yemen's capital

Thailand's Constitutional Court dismissed 39-year-old Paetongtarn Shinawatra from office on Friday (August 29) on an ethics violation, abruptly ending the term of Thailand's youngest prime minister after just over a year in office.

Bangkok

Thai court ousts PM Paetongtarn for ethics violation

Chinese President Xi Jinping will be flanked by leaders of some of the world's most heavily sanctioned nations at a World War Two military parade in Beijing next week, in a show of solidarity against the West.

China to stage massive military parade as Xi hosts sanctioned leaders

The multinational peacekeeping force known as UNIFIL has played a significant role in monitoring the security situation in southern Lebanon for decades, including during the Israel-Hezbollah conflict last year.

Beirut

UN votes to end peacekeeping force in Lebanon after five decades

Russia, set to assume the UN Security Council presidency in October, has proposed extending the resolution that governs the snapback mechanism, potentially intensifying a diplomatic standoff with European powers.

Moscow

Russia slams European push to reimpose UN sanctions on Iran

It's been 13 days since President Trump said he could strike a peace deal in Ukraine, following his meeting with Russia's leader, Vladimir Putin. But Russia shows no signs of backing down, launching an aerial assault on Kyiv.

Kyiv

Russian attack on Kyiv kills more than a dozen people

The shooter in Minneapolis fired more than 100 rounds from a rifle at the church where students at Annunciation Catholic School attended Mass. City and state officials highlighted this fact as they called for stricter gun control.

Minneapolis officials call for stronger gun laws after school shooting

The shooter who killed 2 kids and injured 17 at Annunciation Catholic Church in Minneapolis had ties to the church where he targeted children celebrating a new school year during mass.

Annunciation school shooter had knowledge of church he targeted

The White House is responding to Centers for Disease Control and Prevention Director Dr. Susan Monarez's refusal to step down from her role. CBS News' Olivia Rinaldi reports.

White House reacts to CDC director refusing to step down from role

In Tehran on Thursday, Iran’s currency traded at over 1 million to $1. At the time of the 2015 accord, it traded at 32,000 to $1, showing the currency’s precipitous collapse in the time since.

Tehran

Europe prepares sanctions as Iran's currency falls

Two children, ages 8 and 10, were killed in a school shooting at Annunciation Church in Minneapolis. The FBI is investigating the shooting as an act of terrorism and a hate crime targeting Catholics. Warning, this video is difficult to watch.

FBI investigating Minneapolis Catholic school shooting as hate crime

UN officials and aid agencies have warned that famine in Gaza is no longer a looming threat but a present reality, with children increasingly dying of hunger. In a blunt address to the UN Security Council, officials described the famine and widespread hunger in the enclave as “engineered” and “man-made” disasters.

UN Security Council affirms Gaza famine is manmade

Denmark summoned the top U.S. diplomat in the country to protest what Danish officials say is an unprecedented effort by people close to U.S. President Donald Trump to conduct secret influence operations in Greenland.

Breakdown