Why Core PCE Inflation Is Sticky at 3.3 Percent

The Fed's preferred inflation gauge, core PCE, is running at 3.3 percent annually—hotter than the headline CPI. In episode 172, Lucas and Luna explain why core PCE matters more to the Fed, how it differs from CPI, and why the 2.32 percent ten-year breakeven rate suggests markets expect the Fed to tolerate above-target inflation for longer. They also unpack the implications of a 1.5 percent real GDP growth rate and a 4.1 percent unemployment rate, and what that means for the upcoming FOMC decision. With the Fed's Hammack signaling a hawkish bias, this episode cuts through the data noise to focus on the number that actually guides monetary policy. #CorePCE #InflationData #FederalReserve #MonetaryPolicy #EconomicIndicators #CPI #GDPGrowth #UnemploymentRate #BreakevenRate #Hammack #FOMC #MacroData #Economics #FexingoBusiness #BusinessPodcast #MarketAnalysis #RateDecision #StickyInflation Keep every episode free: buymeacoffee.com/fexingo