The Fed Needs To Hike Interest Rates

The article argues the Fed's policy stance is too loose with core PCE inflation still above 3%. It highlights durable goods inflation as shifting from a deflationary drag to a meaningful contributor to higher core PCE, implying tighter policy pressure and a hawkish outlook for rates.

Analysis

The article argues the Fed's policy stance is too loose with core PCE inflation still above 3%. It highlights durable goods inflation as shifting from a deflationary drag to a meaningful contributor to higher core PCE, implying tighter policy pressure and a hawkish outlook for rates.