Federal Reserve Chair Kevin Warsh struck a hawkish tone in his first press conference. [5, 6] He vowed to restore price stability and removed forward guidance on interest rates. [9] Traders increased bets on rate hikes later this year. [21] These policy shifts initially sent stock markets lower. [5]
An interim peace deal between the U.S. and Iran supported equities by reopening the Strait of Hormuz. [3, 17, 18] Oil prices fell following the announcement, easing energy inflation concerns. [11]
May retail sales exceeded expectations, signaling economic strength. [8, 13] This data highlighted the persistent inflationary pressures the Fed intends to combat. [19]