Latest / The Federal Reserve Podcast with Fexingo: Interest Rates, FOMC Meetings, and Monetary Policy
Why the Fed Is Watching the PCE Over CPI Now
Episode 112 of The Federal Reserve Podcast with Fexingo digs into a subtle but critical shift in how the Fed reads inflation. While headline CPI still grabs headlines, Lucas and Luna explain why the central bank's preferred gauge — the personal consumption expenditures price index, or PCE — is telling a different story. With core CPI at 336.1 and core PCE at 130.1, the gap between them has widened. This episode explores why PCE matters more for rate decisions, how it accounts for substitution effects, and what the latest data suggests about the path forward. Lucas breaks down the…
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