U.S. Core Inflation Expected to Remain Moderate in May, Easing Fed Rate Hike Concerns

According to economists Durie and Wong cited by Jin10, U.S. headline CPI for May is expected to show strength, but core inflation should remain moderate with month-on-month increases in line with the 2% inflation target. Moderating core inflation data would ease market concerns about further Federal Reserve rate hikes, with economists still expecting the Fed to cut rates by 25 basis points in the fourth quarter of 2026.
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