Why the Fed Is Stuck With Inflation That Wont Quit

In this episode of Inflation Explained, Lucas and Luna dig into why the Fed's preferred core PCE inflation gauge is still running hot even as headline CPI has moderated. They examine the sticky services inflation—things like rent, insurance, and medical care—that the central bank can't seem to shake, and what it means for rate cuts in 2026. With the Fed funds rate at 3.63% and the 10-year breakeven inflation rate dipping to 2.25%, the hosts discuss whether the market is pricing in a pivot that the Fed isn't ready to deliver. Lucas points to specific data: Core CPI hit 336.1 in May, up from 335.42, while core PCE sits at 129.6. They explore why 'last mile' inflation is proving so stubborn and what that means for your wallet. #Inflation #FederalReserve #CoreCPI #CorePCE #StickyInflation #ServicesInflation #FedFundsRate #BreakevenRate #CPI #PCE #MonetaryPolicy #RateCuts #Economics #FexingoBusiness #BusinessPodcast #InflationExplained #LucasAndLuna #EconomicIndicators Keep every episode free: buymeacoffee.com/fexingo