Fed watcher Timiraos: Sticky core goods prices mean services must cool further for 2% inflation

The significance lies in the composition of inflation rather than its level: goods, which had been a disinflationary drag, are now adding pressure, leaving services to carry the burden of reaching target. That constrains the Fed's room to look through firm prints, since the easy offsets are gone. This matters most for rate-sensitive sectors, where the path of policy hinges on whether services cooling accelerates. Whether core goods stay at this pace, and whether services follow, is the open question.