Financial markets are betting that interest rates could be raised as early as September, with possibly one more rate hike to follow.

Odaily Planet Daily News: Affected by the Middle East conflict driving up energy prices, U.S. inflation rose further in May, with the annual PCE rate breaking through the 4% threshold for the first time in three years. This could push 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. annual PCE price index recorded 4.1% in May, the largest increase since April 2023 and the first time the data has been above 4.0%. The U.S.-led war against Iran drove up oil prices, thereby pushing up gasoline prices.

Although crude oil and gasoline prices have fallen in recent weeks with the fragile ceasefire agreement, economists expect inflation to remain elevated for a certain period. Before this conflict, consumers were already dealing with price increases triggered 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, due to growing concerns about inflation, expect to raise interest rates this year. Financial markets are betting that a rate hike could occur as early as September, with possibly one more rate hike to follow. (Jin Shi)