Inflation rose 4.2 percent in May, the highest since 2023, keeping prices above the Fed’s target and increasing the odds of a rate hike later this year.

Fed may drop its easing bias at the June meeting as inflation stays high and jobs remain strong, setting up the possibility of 2026 rate hikes.

US inflation hit 3.8% in April 2026, a three-year high, with forecasters warning it could top 4%. Bitcoin holds above $80K as the Fed freezes rate cuts.