Why the GDP Deflator and Core PCE Are Diverging

Lucas and Luna dig into a puzzle that's been nagging macro watchers: real GDP is growing at just 1.5 percent annualized, yet core inflation measures are sending conflicting signals. They unpack the GDP deflator's rise, the surprising cooling in CPI, and why the Fed's preferred core PCE gauge remains stubbornly sticky. With breakevens ticking up and jobless claims jumping, they explore what this divergence means for the Fed's next move and for your portfolio. If you've ever wondered why inflation headlines feel contradictory, this episode gives you the framework to make sense of it all. #GDPDeflator #CorePCE #Inflation #FederalReserve #EconomicData #Macro #CPI #BreakevenRates #JobsReport #MonetaryPolicy #InterestRates #Economics #FexingoBusiness #BusinessPodcast #FinancialLiteracy #MarketAnalysis #Economy2026 #DataDriven Keep every episode free: buymeacoffee.com/fexingo