Latest / The Macro Memo with Fexingo: Daily Conversations on Inflation, GDP, and Federal Reserve Policy
Why the Fed Is Stuck Between Sticky Core Inflation and a Softening Jobs Market
In this episode, Lucas and Luna examine the Federal Reserve's current policy dilemma using fresh data from July 2026. Core CPI and core PCE have firmed, while the unemployment rate dipped to 4.2% but payroll growth slowed to just 57,000. The 10-year breakeven inflation rate ticked up to 2.24%. The hosts discuss why the FOMC is unlikely to cut rates soon despite market hopes, and what the divergence between headline and core inflation means for the path ahead. They also explore how the labor force participation rate, now at a 50-year low outside the pandemic, complicates the picture. A…
The skinny
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