U.S. Inflation Expected to Rise Structurally, Fed's June Meeting Anticipated

According to BlockBeats, China International Capital Corporation (CICC) has expressed that the United States may experience a structural and one-time price increase in the coming months, differing from the comprehensive inflation seen between 2021 and 2022. This moderate inflation data is considered favorable for the Federal Reserve, although officials are unlikely to make significant decisions based on a single month's data. With the current labor market remaining stable, the Federal Reserve is not in a rush to cut interest rates, preferring to analyze multiple data sets before making decisions. The Federal Reserve is set to hold its June meeting next week. CICC anticipates that the Federal Open Market Committee (FOMC) may slightly raise inflation forecasts compared to the March projections, which did not account for 'reciprocal tariffs.' However, due to the resilience of non-farm employment and the easing of tariffs, the Fed's outlook on growth might be more optimistic than in March. Consequently, Federal Reserve Chair Jerome Powell's stance at this meeting may lean towards hawkishness, potentially disappointing investors who are hoping for a rate cut.