---
title: "Cleveland Fed's hot inflation forecast fuels rate hike fears"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286757583.md"
description: "Cleveland Fed projects May inflation at 4.18%, the highest in three years, raising concerns over potential rate hikes under new leadership. Persistent inflation may disrupt rate cut plans, impacting tech-heavy market gains as rising yields threaten valuations."
datetime: "2026-05-18T10:49:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286757583.md)
  - [en](https://longbridge.com/en/news/286757583.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286757583.md)
---

# Cleveland Fed's hot inflation forecast fuels rate hike fears

Inflation soars again: Cleveland Fed estimates May inflation at 4.18%, the highest in three years since before the Iran war. Fed policy dilemma: Persistent inflation and new hawkish leadership under Kevin Warsh could halt rate cut plans and even trigger hikes. AI rally at risk: Tech-heavy market gains face pressure as rising yields and policy shifts threaten valuations and momentum.

### Related Stocks

- [.IXIC.US](https://longbridge.com/en/quote/.IXIC.US.md)
- [.NDX.US](https://longbridge.com/en/quote/.NDX.US.md)
- [QQQM.US](https://longbridge.com/en/quote/QQQM.US.md)
- [QQQ.US](https://longbridge.com/en/quote/QQQ.US.md)
- [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md)
- [SCHG.US](https://longbridge.com/en/quote/SCHG.US.md)
- [IGV.US](https://longbridge.com/en/quote/IGV.US.md)
- [ONEQ.US](https://longbridge.com/en/quote/ONEQ.US.md)
- [VUG.US](https://longbridge.com/en/quote/VUG.US.md)
- [XSW.US](https://longbridge.com/en/quote/XSW.US.md)
- [IUSG.US](https://longbridge.com/en/quote/IUSG.US.md)
- [TQQQ.US](https://longbridge.com/en/quote/TQQQ.US.md)
- [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md)
- [SMH.US](https://longbridge.com/en/quote/SMH.US.md)
- [QLD.US](https://longbridge.com/en/quote/QLD.US.md)
- [IWF.US](https://longbridge.com/en/quote/IWF.US.md)
- [MGK.US](https://longbridge.com/en/quote/MGK.US.md)
- [QQEW.US](https://longbridge.com/en/quote/QQEW.US.md)

## Related News & Research

- [2026 Rate Cut Odds Plunge to 0% as Inflation Fears Overwhelm](https://longbridge.com/en/news/286809807.md)
- [Fed's Goolsbee; Inflation has got to be front of mind when Warsh starts as chair](https://longbridge.com/en/news/286812315.md)
- [Stop chasing the S&P 500. This Vanguard ETF has beaten it over the last decade.](https://longbridge.com/en/news/286876451.md)
- [ROI-Central banks have a real rate problem: McGeever](https://longbridge.com/en/news/286774949.md)
- [Kevin Warsh takes Fed helm as markets eye possible hike](https://longbridge.com/en/news/286597976.md)