How Funflation Is Reshaping the Feds Interest Rate Calculus

The Federal Reserve Podcast with Fexingo: Interest Rates, FOMC Meetings, and Monetary Policy · Jul 13, 2026 · 8m · transcript

Lucas and Luna dive into the latest inflation data and how the 'funflation' phenomenon—rising costs for entertainment, dining out, and experiences—is complicating the Fed's path to its 2% target. With CPI and PCE both ticking up in May, and the 10-year breakeven inflation rate holding above 2.2%, Lucas explains why the Fed can't ignore the shift in consumer spending toward services. They discuss how this 'funflation' is keeping inflation sticky, even as goods prices moderate, and what it means for the Fed's next moves. Luna challenges whether the Fed's…