PCE broke 4%, can the Fed still stay calm? September rate hike expectations are fully priced in, risk assets are trembling first.

CoinWorld news, the U.S. Commerce Department released data on Thursday showing that the U.S. May PCE price index annual rate recorded 4.1%, the first time it has exceeded 4.0% since April 2023. The conflict in the Middle East has pushed up energy prices, while consumers are also dealing with price increases triggered by Trump's massive import tariffs. The Federal Reserve left interest rates unchanged last week at the 3.50%-3.75% range, with updated quarterly projections indicating that policymakers expect to raise interest rates this year. Financial markets are betting on a rate hike as early as September, followed by another rate hike thereafter.