US Inflation Surges to 4.2% in May, Double Fed Target

US Consumer Price Index jumped to 4.2% annualized in May, significantly exceeding the Federal Reserve's 2% target and marking the highest reading since 2023. The inflation spike raises expectations for potential Fed policy shifts. USD pairs face volatility as traders reassess interest rate expectations. Higher inflation typically strengthens dollar prospects, but sustained above-target readings could force Fed policy recalibration, impacting major USD crosses.