US inflation is persistently running above the Fed’s target: US PCE inflation has surged +28.5% since February 2018, to an all-time high. Had inflation run at a steady 2% target, it would have risen +17.4% over the same period. In other words, the current path overshot the target by +11.1 percentage points. The gap began to widen in 2021 following massive economic stimulus in response to the pandemic and near-zero interest rates in 2020 and 2021. As a result, PCE inflation has been above the Fed's 2% target since April 2021, spanning 60 consecutive months. The most recent reading for March stood at 3.5%, the highest since June 2023. Inflation in the US remains way too high.(The Kobeissi Letter)