US inflation is still running far above the Federal Reserve’s long-term target 📉🇺🇸
Since February 2018:
• US PCE inflation has risen roughly +28.5%
• A steady 2% inflation path would have implied closer to +17%
That’s a massive cumulative overshoot in purchasing power.
The gap accelerated sharply after:
- pandemic stimulus
- near-zero interest rates
- aggressive liquidity injections during 2020-2021
And inflation still hasn’t fully normalized.
The latest March PCE reading came in at 3.5%, the highest level since mid-2023 and well above the Fed’s 2% target.
That means inflation has now remained above target for roughly 5 straight years.
This is why markets remain obsessed with:
• Fed policy
• oil prices
• bond yields
• geopolitical risk
• liquidity expectations
Because even small inflation rebounds now immediately change expectations for future interest rates.
The uncomfortable reality:
The post-pandemic inflation shock was never fully erased. It simply slowed from crisis levels. 👀
#USConsumerSentimentThirdMonthDecline #USIranNearHormuzStraitReopenDeal #CapitalShiftsFromBTCEthToHYPEXRP #HassettIranDealFedRateCut #ETFShiftToHYPEAndXRP