With inflation indicators favored by the Federal Reserve remaining high, interest rate cuts may face obstacles in the coming months.

Shortly before the outbreak of the Iran war, the Federal Reserve's preferred inflation gauge maintained a steady, relatively rapid pace, highlighting the challenges the Fed faces in trying to curb persistent price pressures. The US core PCE price index for February recorded an annualized rate of 3.0%, the final reading of the annualized quarterly rate of real GDP for the fourth quarter was 0.5%, and initial jobless claims for the week ending April 4th reached 219,000. Following the release of this series of economic data, the market reaction was muted. The Federal Reserve considers the PCE index the most accurate barometer of US inflation trends. The latest data indicates that the inflation rate is still far from the Fed's 2% target, and due to soaring oil prices, the inflation rate may rise further in the short term. Persistently high inflation will also hinder the Fed from lowering interest rates for at least the next few months. (Jinshi)