🚨 Inflation Is Still Ongoing 🚨
A new update has emerged — the core PCE, which is the inflation measure favored by the Federal Reserve, stands at 3%.
At first glance, it may seem unremarkable as it aligns with forecasts. However, the significant insights lie beyond the surface…
This statistic indicates the true situation.
Indeed, inflation has subsided — we are no longer facing an emergency.
Nonetheless, it is not decreasing fast enough to provide genuine relief.
So, what does this imply?
At this moment, the economy finds itself in a gray area.
It is not overheating.
Yet, it isn't cooling down sufficiently either.
That is precisely what keeps the Fed feeling apprehensive.
If inflation were to fall sharply, we would likely see interest rate reductions already happening.
If it were to rise again, the focus would shift to implementing stricter measures.
But at 3%?
That represents a challenging middle position.
It compels policymakers to exercise caution.
To delay actions.
To scrutinize every new piece of information.
For the markets, this generates tension.
Traders are averse to uncertainty — and that is exactly our present situation.
Is the Fed likely to alter its course soon?
Will they prolong the pause?
Or will they maintain a firm stance to prevent inflation from reemerging?
There is no definitive answer at this point.
But one aspect is clear —
Remaining at 3% does not alleviate the pressure…
It actually extends it.
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