Fed's Inflation Woes Deepen as Core PCE Index Hits +3.3%

The US Federal Reserve's inflation problem continues to worsen, with the latest Core PCE index coming in at +3.3% year-on-year, well above its 2% target.

This is a trend that has been ongoing for over five years now, and one that has significant implications for both consumers and businesses alike.

The Core PCE index, which excludes food and energy prices, is the Fed's preferred measure of inflation. Its persistence above the 2% target suggests that US inflation is not only sticky but also on the rise.

This has sparked concerns among market analysts, with some calling for a hike in interest rates to combat rising inflation. However, others point out that recent economic data has been weak, with two consecutive poor Non-Farm Payroll reports and disappointing quarterly earnings updates from major retailers like Walmart.