Sticky inflation in a key part of the U.S. economy is the biggest barrier to Fed rate cuts

Painful price increases persist in services.

The reason: Inflation has proven to be sticky in major parts of the economy. There’s a lingering worry at the Fed that it might not slow as quickly as Wall Street expects.

The biggest area of concern is the cost of services, which has not slowed as much as the price of goods such as furniture, appliances and consumer electronics.