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