Is the Fed Behind the Curve?

Inflation has been a topic of discussion for some time now as the Fed seeks to normalize monetary policy. The Commerce Department reported today that the PCE (personal consumption expenditures price index) jumped to 2% year-over-year in March. That 2% is the Fed’s desired annual target for inflation.

Inflation is gaining further traction due to a tightening labor market as well as recent tax cuts that are providing economic stimulus. Just last week, the government reported that wages and salaries saw their biggest increase in 11 years in the first quarter.

Recent inflation data may cause increased scrut