The Federal Reserve's preferred inflation gauge—the PCE price index—continues hovering around the 3% mark, showing little momentum toward the central bank's 2% target. This persistent stickiness in inflation readings suggests the Fed's rate-hiking cycle may have limitations, keeping policymakers in a wait-and-see mode. For traders and investors, sticky inflation data creates a double-edged scenario. On one hand, elevated rates persist longer than hoped. On the other, further aggressive tightening becomes less likely without a significant economic shock. The real question: will the current price-stability plateau hold, or do we see renewed upward pressure? Market participants are closely watching how this plays out, especially as it influences risk asset positioning and macro hedging strategies.