Core Inflation Hits 3.4 Percent What It Means for the Fed

In this episode of The Macro Memo, Lucas and Luna dig into the May core inflation reading of 3.4 percent, the highest since October 2023. They explore how this complicates the Fed's path, especially with the federal funds rate at 3.63 percent and the ten-year breakeven dropping below 2.2 percent. The hosts discuss whether the bond market is signaling a recession or simply adjusting expectations, and what the surge in job openings to 7.6 million tells us about labor market resilience. They also examine the disconnect between strong hiring signals and rising factory layoffs, and consider what the inverted yield curve implies for growth ahead. This episode is grounded in the latest data from June 25, 2026, and offers a clear, conversational take on the macro crosscurrents facing policymakers and investors. #CoreCPI #Inflation #FederalReserve #BondMarket #BreakevenInflation #FedFundsRate #JobOpenings #JOLTS #FactoryLayoffs #YieldCurve #RecessionSignal #MacroMemo #FexingoBusiness #BusinessPodcast #LucasAndLuna #Economics #MonetaryPolicy #LaborMarket Keep every episode free: buymeacoffee.com/fexingo