Kevin Warsh’s preferred inflation measures run well below the core PCE. A shift to a new and alternative inflation measure means strengthening the case for earlier interest rate cuts.
All posts tagged Interest rates
Failed Iran talks could complicate Fed rate outlook as oil-driven inflation rises
Interest rate cuts are no longer easy for the Fed. With ongoing Iran conflict and volatile oil markets, it may even consider rate hikes to ensure inflation remains stable.
Fed holds rates, warns inflation still above target as cuts remain cautious
The Federal Reserve’s latest projections show steady economic growth, persistent inflation above 2% and a slower path to interest rate cuts.
ECB Cuts Three Key Rates by 25 bps as Euro-Area Inflation Falls to 1.9%
The ECB cut its key rates by 25 bps effective June 11 after lowering its 2025 inflation forecast to 2%, with core inflation near target and modest GDP growth expected, but also cautioned against rising tariff uncertainty.