Latest / The Macro Memo with Fexingo: Daily Conversations on Inflation, GDP, and Federal Reserve Policy
Core PCE Hits 3.4 Percent Highest Since 2023
Episode 77 of The Macro Memo digs into the latest core PCE inflation reading of 3.4 percent — the highest since October 2023. Lucas and Luna break down why this number matters more than CPI, how the 10-year breakeven at 2.21 percent tells a different story, and what it means for the Fed's next move. They also explore the contradiction between sticky services inflation and easing goods prices, and whether the bond market is betting the Fed will look through this data. Tied to real GDP growth of 2.1 percent and a Fed funds rate of 3.63 percent.
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