Latest / The Macro Memo with Fexingo: Daily Conversations on Inflation, GDP, and Federal Reserve Policy
Why the Fed's New Favorite Inflation Gauge Is the PCE
In this episode of The Macro Memo, Lucas and Luna unpack why the Federal Reserve's preferred inflation measure, the Personal Consumption Expenditures index, just showed core prices up 3.3 percent annually in July. They explain the structural differences between PCE and CPI, why the Fed leans on PCE despite its quirks, and what the recent plateau in core PCE means for the path of rate cuts. With the ten-year Treasury yield at 4.67 percent and markets pricing in a delicate balancing act, the hosts dissect how the Fed reads the economy through this lens and why it matters for your…
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