May CPI is a double edged sword for the Fed crucial FOMC meeting next week the first under new Chair Kevin Warsh. 📊 📈The Good: Core CPI cooled to 0.2% MoM (below 0.3% expected). 📉The Bad: Headline CPI surged to 4.2% YoY, driven by energy shocks. While retail expects a hawkish rate stance, macro data shows Kevin Warsh is actually an interest rate dove but a balance sheet hawk. He views the AI infrastructure wave not as an inflationary cost, but as a long term deflationary productivity booster. What to expect next week: A pause is locked in. However, instead of threatening rate hikes, Warsh will likely lean into "strategic ambiguity" keeping interest rates steady while turning hawkish on Quantitative Tightening (QT) and liquidity drainage. Watch the balance sheet, not just the dot plot. 🦅🕊️ #Fed #CPI #Macro