The personal consumption expenditure (PCE) index, which the Federal Reserve prefers over the CPI, is up 3.7 percent. Both have remained above the Federal Reserve's "target" rate of 2 percent since early 2021. The Federal Reserve's Federal Open Market Committee voted to hold interest rates steady at 3.5 percent to 3.75 percent, the same levels it has maintained since January. But if the Federal Reserve won't push interest rates higher, the bond market seems ready to do it. But if the Federal Reserve won't raise interest rates to combat inflation, is it just admitting that inflation has won?