The Fed Faces a 3.6 Percent Fed Funds Rate While Inflation Runs at 4.2 Percent

In Episode 50 of The Macro Memo, Lucas and Luna examine the growing disconnect between the Federal Reserve's policy rate at 3.62 percent and headline inflation at 4.2 percent. With the ECB hiking for the first time since 2023 and wholesale prices surging 1.1 percent in May, the conversation focuses on whether the Fed is now behind the curve. Lucas breaks down the real fed funds rate math, the signal from rising breakeven inflation, and what it means for the neutral rate debate. The hosts also discuss how the Iran conflict and energy costs are complicating the Fed's path. A must-listen for anyone tracking central bank policy in a volatile macro environment. #FederalReserve #Inflation #FedFundsRate #RealRates #MonetaryPolicy #ECB #InterestRates #CPI #WholesaleInflation #NeutralRate #BreakevenInflation #CorePCE #EnergyPrices #IranConflict #MacroEconomics #CentralBanks #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo