New Delhi, June 12 -- Rising inflationary pressures in the United States and concerns over bond yields could pose a significant test for the new Federal Reserve leadership, according to a report by global brokerage Jefferies.

In its latest GREED & FEAR note titled "Bond pressures and AI resets", Jefferies said that financial markets are entering a challenging phase following the latest US inflation data.

The report noted that "Financial markets remain set up for a test of the new Federal Reserve chairman following the release of the latest CPI data."

Headline CPI inflation in the US increased from 3.8 per cent year-on-year in April to 4.2 per cent in May, while core CPI inflation rose from 2.8 per cent to 2.9 per cent. Energy prices we...