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.

Donald Trump is urging new Fed Chair Kevin Warsh to cut interest rates, but inflation at a three-year high complicates the picture for crypto and risk