Inflation Sticks at High Rates Despite Interest Hikes, Confounding Forecasts

• Inflation has stalled at 3-4% for 8 straight months after initially dropping from over 9% • Experts are puzzled that inflation remains well above the Fed's 2% target despite interest rate hikes • Rents and housing costs have defied forecasts and remain over 6%, preventing further disinflation
• Supply chain issues and federal deficits may contribute to keeping inflation elevated • Consumers face a "no landing" scenario where above-target inflation persists amid a still-strong economy