Inflation Pressures Build, Raising Doubts Fed Can Cut Rates Soon

Core PCE inflation rose 0.5% in January (revised up from 0.4%) and 0.3% in February, showing inflationary pressures are building rather than just a temporary "bump"

Durable goods prices rose in January and February after 6 months of declines, signaling an end to the disinflationary impact

Service inflation remains elevated due to strong labor market

Evidence suggests the Fed won't be able to cut rates in June as expected and will likely have to wait until weakening labor market signals recession

Next trigger for stock market correction may be March CPI report confirming ongoing inflation over 2% target, rejecting "inflation bump" theory