Federal Reserve's Kashkari: I am not surprised by the overall rise in inflation; the key issue is the sustainability of the Strait closure.

US Dollar: 1. ADP Weekly Employment Report: Private sector employers added an average of 33,000 jobs per week in the four weeks ending April 25. 2. Fed's Goolsby: If rising service sector prices reflect an overheated economy at the lower levels, the Fed must seriously consider how to break this escalating chain of inflation. 3. The US Senate confirmed Warsh as a member of the Federal Reserve Board of Governors; the vote for the chairman will take place on Wednesday. 4. Fed's Goolsby: April CPI report missed expectations. 5. US April unadjusted CPI annual rate reached 3.8%, a new high since May 2023, higher than the market expectation of 3.7%. US April unadjusted core CPI annual rate reached 2.8%, a new high since September 2025, higher than the market expectation of 2.7%. Euro: 1. German investor confidence unexpectedly rose in May, but remained in negative territory. 2. ECB Governing Council member Nagel: If the oil shock causes inflation expectations to derail, the central bank must take action. 3. ECB Governing Council member Pacharidis: There is a possibility that the ECB will not raise interest rates. 4. France's unemployment rate surpasses 8% for the first time in five years. 5. France's April inflation rate is confirmed at 2.5%, a new high since July 2024. Pound Sterling: 1. Political turmoil in the UK causes UK bond yields to surge to a 28-year high. 2. Market pricing has fully priced in three 25-basis-point rate hikes by the Bank of England in 2026. 3. Miata Vanbrugh, Junior Minister for Housing and Communities, resigned from her government post on Tuesday and urged the Prime Minister to develop a timetable for her departure. 4. British media: Two more UK government officials have announced their resignations. 5. According to the Financial Times: Allies of Chancellor Reeves believe she should remain Chancellor if Prime Minister Starmer is dismissed. 6. UK Prime Minister's Office: Starmer has indicated his intention to remain in office to the Cabinet. 7. Sources: The UK Prime Minister has asked the Cabinet not to discuss his future at this time and has requested that Cabinet members meet with him individually. Japanese Yen: 1. Bank of Japan: Bank of Japan Governor Kazuo Ueda will speak at a monetary policy conference hosted by the Bank of Japan on May 27. 2. Bank of Japan: No meeting was held between US Treasury Secretary Bessenter and Bank of Japan Governor Kazuo Ueda. 3. The yield on Japanese 20-year government bonds rose to 3.511%, the highest level since 1996. 4. OECD: The Bank of Japan's interest rate may reach 2% by the end of 2027. Other: 1. Bank for International Settlements: Bank of Japan Governor Kazuo Ueda has been appointed Chairman of the Committee on the Global Financial System for a two-year term. 2. Bank for International Settlements: The Board of Directors elected the Governor of the Bank of Italy and ECB Executive Board member Panetta as the new Chairman. 3. S&P: Mexico's rating outlook was downgraded to "negative" due to reduced fiscal flexibility. 4. Bank of Thailand: The risk of a second round of inflation remains limited. Supply-driven inflation is expected to slow next year. 5. Senior Deputy Governor of Central Bank Indonesia: Central Bank Indonesia continues to implement "precise intervention" to stabilize the Indonesian rupiah.

COLLINS: IT’S POSSIBLE U.S. CENTRAL BANK WILL NEED TO HIKE INTEREST RATES TO COOL INFLATION PRESSURES