Fed’s Wait-and-See on Rate Cuts Further Supported by Extra-Hot “Core Services” PCE Inflation & Hot “Core” PCE Inflation

By Wolf Richter –  WOLF STREET

The core PCE price index, which excludes the volatile components of food and energy and is the inflation index the Fed is focused on, jumped by 3.9% annualized in March from February, nearly double the Fed’s target of 2%, according to the Bureau of Economic Analysis.