Hot May PPI at 6.5% Fuels Hawkish Fed Bets, Bitcoin Holds Near $62K

Wholesale inflation accelerated sharply in May, with the PPI rising 1.1% month-over-month and 6.5% year-over-year—the fastest pace since November 2022—driven by a 23.4% surge in gasoline prices. The hotter-than-expected print follows May CPI at 4.2% and BlackRock’s early warnings of oil-driven inflation risks tied to Middle East tensions. Markets now price over 70% odds of a Fed rate hike by year-end, keeping policy tighter for longer. Bitcoin trades near $62,000 after a 24% drop over 30 days as higher yields and a stronger dollar weigh on risk assets. Attention turns to the June 16-17 Fed meeting and June 25 PCE release for further confirmation of sticky inflation pressures.