US core inflation remained “sticky” in February, based on the core PCE index, which is closely monitored by the Federal Reserve. Core PCE ticked up to a 2.8% year-over-year pace, well above the Fed’s 2.0% inflation target. “It looks like a ‘wait-and-see’ Fed still has more waiting to do,” said Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management. “Today’s higher-than-expected inflation reading wasn’t exceptionally hot, but it isn’t going to speed up the Fed’s timeline for cutting interest rates, especially given the uncertainty surrounding tariffs.”
