Woofun AI reports that U.S. May PCE rose 4.1% year-on-year, with core PCE at 3.4%, aligning with market forecasts. The data failed to bolster rate cut expectations, shifting focus to Federal Reserve policy as Powell downplayed forward guidance. Officials like Williams and Quarles reinforced a "higher for longer" stance, with inflation potentially not hitting 2% until 2028.

The U.S. dollar remains robust as major banks pass stress tests and capital flows into AI assets, discouraging early easing bets.

Meanwhile, Middle East tensions involving the Iranian Revolutionary Guard and the Strait of Hormuz introduce energy supply risks. For crypto, Bitcoin faces volatility driven by dollar strength and liquidity constraints, as markets adjust to prolonged high interest rates.