Financial markets are betting on a possible rate hike as early as September, with the potential for another hike after that.

Odaily reported that, impacted by rising energy prices due to the Middle East conflict, U.S. inflation accelerated further in May, with the PCE annual rate breaking through the 4% threshold for the first time in three years. This could bring the Federal Reserve closer to raising interest rates this year. Data released by the U.S. Department of Commerce on Thursday showed that the U.S. PCE price index for May recorded an annual rate of 4.1%, the largest increase since April 2023, and the first time the data has been higher than 4.0%. The U.S.-led war against Iran has driven up oil prices, subsequently pushing up gasoline prices.

Although crude oil and gasoline prices have declined in recent weeks following a fragile ceasefire agreement, economists expect inflation to remain elevated for a certain period. Prior to this conflict, consumers were already dealing with price increases triggered by Trump's large-scale import tariffs. The Federal Reserve decided last week to keep interest rates unchanged in the 3.50%-3.75% range, but updated quarterly projections indicate that policymakers, due to heightened inflation concerns, anticipate raising rates this year. Financial markets are betting on a possible rate hike as early as September, with the potential for another hike afterward. (Jin Shi)