Why the Fed's Preferred Inflation Gauge Hit Its Highest Since 2023

Core PCE inflation hit 3.4% in May 2026, the highest since October 2023. Lucas and Luna break down why this matters more than CPI, how it complicates the Fed's rate-cut timeline, and what it means for your monthly budget. They look at the breakdown—services inflation staying hot, goods disinflation fading—and why the Fed's preferred metric is giving a different signal than the headline CPI number. Plus, a quick look at how rising energy costs from geopolitical tensions in the Strait of Hormuz are feeding into the inflation picture. If you've been confused why inflation headlines seem contradictory, this episode connects the dots. #PCE #CorePCE #Inflation #FederalReserve #RateCuts #ServicesInflation #GoodsDisinflation #CPI #FedFundsRate #EnergyPrices #StraitOfHormuz #Geopolitics #MonetaryPolicy #DeltaNeutral #FOMC #Economics #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo