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US financial media; framed the print as a decisive blow to rate-cut expectations and amplifier of the September hike debate

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Led with core PCE hitting 3.4%, attributing the acceleration to Iran-war-driven fuel prices feeding through to goods and services inflation. Cited CME FedWatch data showing markets pricing 65% odds of at least one 25 basis point hike by September, a sharp reversal from rate-cut pricing earlier in the year. Quoted economists saying the print removes any residual case for a cut in 2026.

“Core inflation rate hit 3.4% in May, highest since October 2023, Fed's preferred gauge shows.”