Attached is the Fed’s favored inflation measure, the core PCE deflator.

Putting aside that 1% is the lower end of their defacto ‘comfort zone’, the speed of the move is as much a concern as the level.

• M/M Core PCE was 0.09%
• Personal income and wage and salary income were both 0.2% m/m, but are down -2.6% and -5.2% y/y respectively.
• Initial claims up 17k to 551k (prior week revised +4k).
• Total Ongoing Claims (continuing+extended+emergency) +35k