Latest / The Macro Memo with Fexingo: Daily Conversations on Inflation, GDP, and Federal Reserve Policy
Why the Fed Is Cutting Rates Despite Sticky Core Inflation
The Federal Reserve faces a tough choice in May 2026: core PCE inflation is running at 3.3 percent, but the real economy is softening. Lucas and Luna examine the data behind yesterday's Fed minutes and what it means for markets. They break down why the Fed might cut rates even with inflation above target, focusing on the divergence between services inflation and goods deflation. The episode also covers how the small-cap rally and the flattening yield curve fit into this picture, and what investors should watch for at the June FOMC meeting.
#FederalReserve #Inflation #CorePCE…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.