"Inflation Woes: The Fed's Real Problem and Stock Market Freakouts"

The US Federal Reserve faces a challenge as the "supercore" inflation measure, which excludes shelter and rent costs from its services reading, accelerated to a 4.8% pace year over year in March, the highest in 11 months. Economists are concerned about the persistent inflationary pressures, particularly in services prices, and the potential impact on the Fed's 2% inflation target. The Fed may struggle to bring down inflation with rate hikes, as the current drivers are stickier and not as sensitive to tighter monetary policy, leading to uncertainty about the possibility of future rate hikes.