U.S. inflation hit its highest in three years as eyes turn to a new Fed Chair with an unproven record - Cryptopolitan

Crypto Insight Summary: inflation hit 4.2% in May, a three-year high driven by energy costs from the Iran conflict. * Currency markets shifted on the data, with the dollar slipping and traders pulling back rate hike bets to September. * All eyes are on the Fed’s June 16-17 meeting, the first chaired by new chair Kevin Warsh. While the Middle East war continues, the new CPI has put further pressure on Fed already amidst its major leadership change.** In the last 12 months, the CPI went up by 4.2% through May, the largest jump since 2023. The most affected category is energy, as U.S household budgets have been facing a major squeeze by gasoline and fuel costs amid the ongoing conflict. Meanwhile, the dollar was down 0.2% to 99.75 against the other 6 big currencies after the[inflation data](https://www.bls.gov/news.release/cpi.nr0.htm) was released. Nonetheless, it stayed near its two month high of 100.214, which it touched on Monday. Despite the flare-up, Dominic Bunning, head of G10 FX strategy at Nomura, said broader market sentiment still leans toward a resolution. Elsewhere, the Japanese yen held steady at 160.34 per dollar, near a level widely seen as a trigger for government intervention. A Bank of Japan rate hike at its June 16 meeting is nearly fully priced in, but analysts say it may not be enough on its own to lift the yen. Crypto Insight Analysis: Direction: Bearish BTC / Bearish ETH Impact: Minor Impact Horizon: Short-term (1-3 days) Reasoning: Rising inflation and potential Fed rate hikes typically pressure risk assets like crypto.