Oil Is Below $70, but the Federal Reserve's June Inflation Forecast Has an Unpleasant Surprise in Store for Wall Street

Despite crude oil prices falling below $70/barrel, the Federal Reserve's June inflation forecast reveals persistent inflationary pressures. While headline inflation is expected to moderate to 3.96%, Core PCE inflation is projected to rise to 3.43%, remaining well above the Fed's 2% target. Nine of 18 FOMC members are signaling potential rate hikes before year-end, posing risks to an expensive stock market heavily reliant on debt-financed AI investments.