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What the Fed Makes of Core PCE at 3.4 Percent
Season 2
Episode 81
Published 1 week, 5 days ago
Description
Core PCE hit 3.4% in May 2026, the highest since October 2023. Lucas and Luna break down why this number matters more than CPI, what it tells us about sticky services inflation, and how the Fed is likely to respond. They dig into the components—housing, healthcare, financial services—and what the data says about the Fed's credibility on its 2% target. No hot takes, just a clear-eyed look at the Fed's preferred gauge and what it means for rates.