3.8%! U.S. Inflation "Failed to Lose Weight," Powell's Expression Can't Hide It Anymore

U.S. CPI rose 3.8% year-over-year in April. After seeing the data, Wall Street collectively entered a "Schrödinger's Happy" state: feeling it's okay, but also feeling it's not quite right.
It's like you've been dieting for three months—good news is you've lost 1 pound, bad news is you still can't fit into your pants.
Who is the most embarrassed? Of course, Federal Reserve Chair Jerome Powell. Over the past year, he has been aggressively raising interest rates, almost bald from talking so much: "We will definitely bring inflation back to 2%!"
But now, inflation is like a rebellious teenager—promising one thing, but doing the opposite in action.
The market originally expected at least three rate cuts this year, but now it has become:
"Three? If we get one, it’s like a grave sprouting green shoots."
U.S. Treasury yields jumped to high levels, the dollar remains strong, and global capital is starting to realign.
The most uncomfortable are emerging market countries: as the dollar rises, funds flee as quickly as clocking out after work.
And U.S. consumers are gradually entering the "refined poverty" stage.
They can't afford Starbucks, but must finance new Apple products; takeout is too expensive, but they must post travel photos on social media.
The most amazing thing about the U.S. economy is: everyone shouts poverty, yet consumption data is ridiculously strong.
Why?
Because Americans' core economic logic is:
"The future me will solve the current problems."
Credit card companies are moved to tears after hearing this.
This CPI also reveals a key point: service sector inflation remains stubborn.
Especially rent and medical costs, which simply won't come down.
In plain terms, U.S. inflation is no longer just about high oil prices, but a comprehensive rise in social costs.
Capital markets are also starting to reprice:
AI stocks continue to rise because the market believes technology can make money;
Traditional consumption is under pressure because people's wallets are quickly running out;
Gold is strong because everyone is increasingly worried about dollar credibility.
Bitcoin continues to act as a "financial mental state detector"—whenever the market gets tense, it begins to twitch violently.
Many ask: will the U.S. experience a "soft landing"?
Now it looks more like a "bungee jump landing"—theoretically safe, but the process is terrifying.
This 3.8% CPI actually indicates one thing:
The U.S. economy isn't catching a cold; it's just running a high fever that won't break.