How hot is inflation? 1, 3, and 6-month annualized Headline AND Core PCE inflation are now all above +3.0%. 1-month annualized Core PCE inflation is now running at a whopping +4.5%. This is 250 basis points ABOVE the Fed's long-run target, all as the Atlanta Fed now sees -0.5% GDP contraction in Q1 2025. Truly incredible.