US stocks slide and dollar climbs after Fed lifts 2026 PCE inflation view to 3.6%

The Federal Reserve raised its end-2026 PCE inflation forecast to 3.6% from 2.7%, signaling a possible rate hike within the year. The dollar strengthened and US Treasury yields moved higher. Separately, while the US and Iran reached a preliminary agreement, restoring full shipping through the Strait of Hormuz is expected to take time and OECD crude inventories have fallen to the lowest level since 1990. The developments reinforce expectations of tighter oil supply and add upward pressure on crude prices.