For the Fed, May’s inflation report settles nothing • Core was mild, but a soft monthly print buys less when it's drowned out by a hot headline and a "boomier" demand backdrop. The case for patience now needs a run of cool reports, not one. • The forces pushing up prices have changed character. No longer just tariffs but the energy shock, plus an AI buildout and wealth effects letting firms keep passing costs through. It's harder to wave that off. • Net for Warsh's first meeting next week: it leaves the Fed's recent hawkish lurch intact without forcing it any hawkier today. The debate still runs from hold-longer to whether a hike belongs back on the table, unthinkable when the year opened with markets pricing cuts. https://www.wsj.com/livecoverage/stock-market-cpi-inflation-06-10-2026/card/nick-timiraos-for-the-fed-may-s-inflation-report-settles-nothing-oFt5vWB5COxoNZ59eKMa(Nick Timiraos)