---
title: "Fed's May inflation forecast spikes, rate cuts unlikely in 2026"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286852758.md"
description: "Cleveland Fed projects May inflation at 4.18%, with Q2 CPI annualizing at 6.89%, the highest in three years. The Iran war's impact has led to soaring oil prices, causing U.S. gas prices to rise rapidly. As a result, hopes for rate cuts in 2026 have diminished, with potential hikes anticipated under new Fed Chair Kevin Warsh."
datetime: "2026-05-19T04:21:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286852758.md)
  - [en](https://longbridge.com/en/news/286852758.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286852758.md)
---

# Fed's May inflation forecast spikes, rate cuts unlikely in 2026

Inflation forecast jumps: Cleveland Fed projects May inflation at 4.18%, with Q2 CPI annualizing at 6.89%, the highest in three years. War impact on prices: Iran war’s closure of the Strait of Hormuz has sent oil prices soaring, pushing U.S. gas prices up at the fastest rate in 30 years. Rate cut hopes fade: The surge has removed chances of 2026 rate cuts, with potential hikes possible under new Fed Chair Kevin Warsh.

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