FOMC median PCE inflation projections for end-2026, end-2027 and end-2028 are 3.6%, 2.3% and 2.0%, versus March medians of 2.7%, 2.2% and 2.0%.

Goldman Sachs vice chairman Kaplan, a former Dallas Fed president, said if inflation stays elevated the Fed may need to raise rates as soon as September. He said if inflation data does not cool between now and September, Fed action in September or this autumn would be prudent. Markets turned more hawkish after Fed chair Kevin Warsh signaled continued focus on fighting inflation; traders sold short-term Treasuries, lifting near-term yields. Warsh’s comments were reinforced by Fed members’ projections, with roughly half forecasting rate increases before year-end. Kaplan warned persistent inflation would imply policy remains too loose and noted Fed hikes rarely come as a single move — they typically occur in series of two or three, so a September hike would likely be followed by one or two more.

US President Trump said affordability is a made-up term invented by Democrats.