Latest / The Federal Reserve Podcast with Fexingo: Interest Rates, FOMC Meetings, and Monetary Policy
Why the Fed Is Watching the 2-Year Breakeven Rate
Episode 109 of The Federal Reserve Podcast with Fexingo: Interest Rates, FOMC Meetings, and Monetary Policy. Lucas and Luna dive into the 2-year breakeven inflation rate, a market-based measure that strips out noise from volatile energy prices. With core CPI stuck around 3.3% year-over-year and the 2-year breakevens hovering near 2.6%, the Fed faces a tricky signal: bond markets expect inflation to stay above the 2% target even as headline CPI cools. The hosts discuss how this metric affects the FOMC's rate path, especially after the weak June payrolls report. They also touch on the…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.