The Fed's policy space is being squeezed again! The unexpected rise in the US goods trade deficit in May hit a one-year high, which may drag down GDP in the second quarter.

According to the financial news app Wall Street News, data released by the US Census Bureau on Friday, June 26, showed that the US goods trade deficit in May widened significantly by 27.4% from the previous month, reaching $105.8 billion, the largest scale in over a year. This figure far exceeds the median estimate of $85 billion by economists, reflecting a severe deterioration in the US trade imbalance in May.