A key inflation indicator closely monitored by the Federal Reserve has reached its highest level since February, standing at 2.6% greater than the previous year in July. This exceeds the 2% target and casts uncertainty on the timing of expected interest rate cuts by Jerome Powell. The Personal Consumption Expenditures price index, which is the Fed's primary inflation gauge, rose by 0.2% month-over-month, meeting expectations set by Wall Street. Excluding food and energy, the core PCE index, the Fed's favored inflation measure, surged to 2.9% annually, up from June's 2.8% and achieving its peak since February. On a monthly basis, the core PCE climbed 0.3%, mirroring June's pace. These figures reflect persistent inflationary pressures, presenting a hurdle for policy adjustments.