Fed Officials Turn Hawkish as Rate-Cut Bets Fade; May Jobs Beat Expectations at 122K

According to BlockBeats and Reuters columnist Mike Dolan, on June 4, expectations for Federal Reserve rate cuts this year are fading as inflation pressures persist due to AI investment demand and Middle East tensions. May private sector employment added 122,000 jobs, exceeding forecasts and prompting markets to price in potential rate hikes instead. The dot plot's sole remaining "one rate cut this year" projection may be scrapped entirely, and incoming Fed Chair Kevin Warsh could eliminate the dot plot mechanism altogether. Policy statement may further dial back easing language, with several officials already proposing removal of forward guidance.
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