PANews reported on May 28th that, according to data from the U.S. Bureau of Economic Analysis (BEA), the U.S. PCE price index rose 3.8% year-on-year in April, the largest increase since May 2023, higher than the revised 3.5% in March. The core PCE, excluding food and energy, rose 3.3% year-on-year, further increasing from 3.2% in March. The market believes that rising energy prices triggered by the Iran war are one of the important factors driving up inflation. Since the PCE is the inflation indicator most closely watched by the Federal Reserve, the strong data further strengthens market expectations that the Fed will maintain high interest rates for a long period. Currently, the financial market expects the Fed to maintain the benchmark interest rate in the 3.50%-3.75% range until 2027.