Federal Reserve Warns of Entrenched Inflation Amid Wall Street Highs

The Dow Jones Industrial Average and S&P 500 have hit new highs, but inflationary worries are mounting on Wall Street.

The Federal Reserve Bank of Cleveland's Inflation Nowcasting tool projects a third straight month of easing for headline inflation in August, with a forecast decline to 3.22%.

However, the price stickiness of Core Personal Consumption Expenditures (PCE) suggests that Iran-war-driven inflation has become entrenched and is no longer just an energy-supply disruption issue.