**[Personal Consumption Expenditures Price Index Hits 3-Year High, Fed Rate Hike Uncertainty Intensifies]** In January this year, U.S. President Donald Trump nominated Kevin Warsh as the Federal Reserve Chair, hoping the latter would respond to his calls for rate cuts. A month later, the sudden shift in the Middle East situation disrupted the established path: conditions that originally seemed likely to support a Fed rate cut have now drifted further away. "The reasons for the Fed to cut rates are becoming fewer and fewer," analysts lamented. For the current Federal Reserve, inflation is undoubtedly a "major concern." The latest data shows that the U.S. Personal Consumption Expenditures (PCE) Price Index for May has risen to a 3-year high. As the energy supply shock triggered by Middle East geopolitical conflicts gradually subsides, the Fed may enter a period of observation to assess the structural nature of inflation. Whether U.S. inflation can gradually decline in the future will become a key consideration for subsequent policy decisions. Following the release of the above PCE data, traders slightly reduced their bets on a Fed rate hike. However, overall, the market still expects the Fed to decide on a rate hike as early as the September meeting. (Shanghai Securities News)