đš US INFLATION ISNâT DONE YET
US Personal Consumption Expenditures (PCE) inflation
rose from 2.7% YoY (October) to 2.8% YoY (November).
Thatâs above the FEDâs 2% target â again.
Why This Matters
PCE is the FEDâs preferred inflation gauge.
When it moves higher, policy pressure returns.
This isnât a one-off print.
It suggests inflation remains sticky, not defeated.
The Bigger Message
The market narrative says inflation is âunder control.â
The data says otherwise.
Once inflation embeds itself:
âą Itâs harder to cool
âą Rate cuts become riskier
âą Policy mistakes get more expensive
The Reality Check
Inflation isnât collapsing.
Itâs refusing to disappear.
đ The genie is out of the bottle â and the FED canât easily put it back in.
Why Markets Care
âą Delayed or fewer rate cuts
âą Volatility across risk assets
âą Continued demand for hard assets & hedges
Macro pressure is still alive.
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