Trump: ‘I love’ inflation as rates and oil press Bitcoin

President Donald Trump embraced May’s inflation reading after government data showed consumer prices rose 4.2% year‑over‑year, a jump driven mainly by higher energy costs. The report arrives one week before the Federal Reserve’s June policy meeting, when officials will discuss the outlook for interest rates under incoming Chair Kevin Warsh.

The Bureau of Labor Statistics said the Consumer Price Index increased 0.5% in May following a 0.6% rise in April. Energy was the largest contributor, up 3.9% after a 3.8% increase in April. Gasoline averaged $4.15 per gallon in May, compared with about $2.98 on Feb. 28, the day U.S. and Israeli forces first struck targets in Iran, the data show. Real wages fell 0.1% in May, marking a second straight monthly decline.

When asked about the figures, Trump told reporters, “The numbers were great… I love the inflation.” He acknowledged efforts to route oil through the Strait of Hormuz and predicted oil prices would “come down like a rock” once the conflict ends. He also repeated that preventing Iran from acquiring a nuclear weapon is a top priority.

Market pricing has shifted after the CPI release. CME FedWatch currently shows a 98.4% probability the Fed will keep the target range at 3.5%–3.75% at next week’s meeting. Futures markets now assign more than a 70% chance of at least one rate hike by the end of 2026.

Higher policy rates tend to strengthen the dollar and raise Treasury yields, which can reduce demand for assets that do not pay interest. Traders and analysts note that those dynamics affect cryptocurrencies such as Bitcoin.

Bitcoin traded near $62,000 after the CPI release, down about 24% over the past 30 days and roughly 51% below its all‑time high above $126,000. A small intraday uptick did not change the broader downtrend.

Kevin Warsh takes office as Fed chair next week. Market participants will focus on whether officials signal a path toward tighter policy at the June meeting and on subsequent economic readings, including energy prices and wage data.