🚨 BREAKING Fed’s Favorite Inflation Gauge Hits 2.8% — Rate Cuts in Trouble?
The Fed’s main inflation metric (PCE) just came in at 2.8% for November, both headline and core.
📌 In line with expectations
📌 But still well above the Fed’s 2% target
📌 And drifting away, not closer
📈 Inflation: 2.8% (Oct: 2.7%)
💸 Consumer spending: +0.5% (still strong)
💼 Income growth: slowing slightly
💾 Savings rate: ticking up to 3.5%
Consumers are still spending faster than inflation — meaning demand hasn’t cooled enough.
🧠for the Fed this Means
The Fed already cut rates 3 times in 2025.
Now inflation refuses to cooperate.
Markets now expect:
⏸️ No rate cut next meeting
✂️ At most 2 cuts in 2026
IMPACT ON MARKET
❌ Aggressive rate-cut bets weaken
⚠️ Bonds stay volatile
📊 Risk assets may face short-term pressure
🟡 Macro-sensitive assets (BTC, Gold) stay in focus
💬 Big Question
Does sticky inflation force the Fed to pause longer — or risk reigniting price pressure?
👇 Drop your macro take
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#Inflation