How the Fed Decodes Conflicting Signals from CPI and PCE

In this episode of The Federal Reserve Podcast, hosts Lucas and Luna examine a puzzling split in the latest inflation data: headline CPI fell for the third straight month, while core PCE edged up. They explore why the Fed's preferred measure, PCE, is bucking the trend, how the 10-year breakeven rate suggests expectations remain well-anchored, and what this means for the rate path as the committee enters the August lull. With Fed watchers parsing Kevin Warsh's recent comments and import prices from China at their highest since 2008, the hosts debate whether the central bank will hold steady or signal a cut. Specific data points include CPI at 332.6, core PCE at 130.1, and the effective fed funds rate at 3.63 percent. #FederalReserve #CPI #PCE #Inflation #MonetaryPolicy #FedFundsRate #InterestRates #FOMC #KevinWarsh #BreakevenRate #ImportPrices #China #Economics #CentralBank #TighteningCycle #FexingoBusiness #BusinessPodcast #Podcast Keep every episode free: buymeacoffee.com/fexingo