Latest / The Macro Memo with Fexingo: Daily Conversations on Inflation, GDP, and Federal Reserve Policy
Why Core PCE Keeps Sticky Above 3 Percent
Lucas and Luna dig into the latest core PCE reading of 3.4 percent, the highest since October 2023, and explore why inflation is proving stickier than the Fed anticipated. They examine the divergence between goods and services prices, the role of housing costs, and what the 10-year breakeven rate of 2.20 percent signals about market expectations. With the Fed funds rate at 3.63 percent, the conversation turns to whether policymakers can afford to hold steady or may need to hike again. The hosts also touch on the surprising resilience of job openings and what that means for wage pressures. A…
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