Economist Steve Moore stated on Fox Business that the five-year break-even inflation rate has collapsed from over 3.5% a month ago to 1.92% as of June 25, signaling the bond market believes inflation is essentially beaten. Moore credited Fed Chair Kevin Warsh's recent messaging on price stability for anchoring expectations. Headline PCE came in at 4.07% year over year in May 2026, driven by a 24.26% surge in energy costs, while core PCE sits at 3.41% and food inflation has decelerated to 2.38%. Moore predicts no further Fed rate hikes as inflation fades, though the two-year Treasury yield at 4.09% shows markets still expect some policy patience.