Latest / The Federal Reserve Podcast with Fexingo: Interest Rates, FOMC Meetings, and Monetary Policy
Why the Fed Is Watching the Services Sector for Inflation Clues
Episode 117 of The Federal Reserve Podcast dives into a key inflation signal the Fed is monitoring closely: services-sector pricing power. With the June CPI coming in at 3.5% annually, down from 3.8% in May, the headline number looks good. But Lucas and Luna explain why core services excluding housing — the so-called 'supercore' — remains sticky around 4.2%, driven by labor-intensive industries like healthcare, hospitality, and auto repair. They reference fresh data from the Atlanta Fed's Wage Growth Tracker and a new Fed research paper on firms' pricing behavior. The…
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