U.S. Inflation Concerns Rise Amid Bond Sell-Off

Recent reports indicate that several U.S. inflation metrics have exceeded expectations, leading to increased market concerns about inflation. According to ChainCatcher, the employment market is stabilizing, and there has been a sell-off in bonds. The report from China International Capital Corporation (CICC) suggests that the U.S. Personal Consumption Expenditures (PCE) inflation is expected to remain above 3.5% for the year, with core PCE inflation exceeding 3%. These figures are significantly higher than the Federal Reserve's 2% policy target. In this context, the Federal Reserve is likely to adopt a more cautious policy stance, making further interest rate cuts unlikely this year.