Woofun AI reports that Richmond Fed President Barkin highlighted a 4.1% year-on-year rise in May's Personal Consumption Expenditures index, marking the largest increase since April 2023. While the recent US-Iran ceasefire has slightly reduced oil prices and eased immediate cost pressures, Barkin warned that inflationary dynamics have expanded beyond the energy sector into the broader economy. He identified AI infrastructure demand, persistent service sector price stickiness, and corporate pricing inertia as key drivers sustaining upward pressure. Although the Federal Reserve maintained interest rates this month, internal dissent has grown, with some officials advocating for potential hikes later this year. Barkin stressed that a restrictive monetary stance remains essential, with future policy decisions dependent on economic developments over the coming months.