Core PCE inflation just got released and went up from 3.3% to 3.4% so certainly not going back to the Fed's target of 2%. Headline PCE inflation even hit 4.1%.
Consumer spending also came in stronger than expected. Personal consumption expenditures rose 0.7% for the month of May.
Different firms like Citadel already expected hiking to start in September but even a hike at the July meeting is now possible combined with shrinking the Fed's balance sheet.