Latest / The Federal Reserve Podcast with Fexingo: Interest Rates, FOMC Meetings, and Monetary Policy
Why the Fed Is Stuck Between PCE and the Strait of Hormuz
Episode 80 of The Federal Reserve Podcast examines a dilemma the FOMC hasn't publicly squared: the May core PCE reading hit 3.4 percent, the highest since October 2023, just as the Strait of Hormuz shipping channel shows fragile signs of reopening after a U.S.-Iran deal. Lucas and Luna walk through why a supply-side shock from energy routes could make the Fed's inflation forecasts even harder to trust — and why the dot plot may be less useful than the narrative around it. They discuss the ten-year breakeven inflation rate dipping to 2.20 percent, what that signals about market…
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