Financial markets are betting on a possible interest rate hike as early as September, with another potentially following thereafter

Odaily Planet Daily News: Affected by rising energy prices due to the Middle East conflict, US inflation rose further in May, with the PCE annual rate breaking through the 4% mark for the first time in three years. This could bring the Federal Reserve closer to raising interest rates this year. Data released by the US Department of Commerce on Thursday showed that the US May PCE price index annual rate recorded 4.1%, the largest increase since April 2023, and also the first time the data has been above 4.0%. The US-led war against Iran pushed up oil prices, which in turn drove up gasoline prices.

Although crude oil and gasoline prices have fallen in recent weeks as a fragile ceasefire agreement was reached, economists expect inflation to remain high for a certain period. Before this conflict, consumers were already dealing with rising prices caused by Trump's large-scale import tariffs. The Federal Reserve kept interest rates unchanged in the 3.50%-3.75% range last week, but updated quarterly forecasts show that policymakers expect to raise interest rates this year due to increased concerns about inflation. Financial markets are betting on a possible rate hike as early as September, with another potential hike thereafter. (Jin Shi)