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<p>Core Personal Consumption Expenditures (PCE) –the preferred inflation measure of the Federal Reserve– climbed further beyond the central bank’s 2% inflation target to 3.5% last month.&nbsp; The Fed admitted that the current pace of inflation has caught them off-guard in this week’s FOMC Meeting Announcement, yet they are keeping their foot on the monetary gas pedal in the hope that rising prices won’t persist.&nbsp; While certain elements of today’s inflation caused by supply/demand imbalances will be inherently transitory, we believe there is a real risk that inflation could prove to be stickier than expected.&nbsp;</p>
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