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Fed policy is based around PCE these days, not CPI. Because PCE is more-leading than CPI is. (Or less lagged?)
by dragontamer 4y ago
Fed policy is based around PCE these days, not CPI. Because PCE is more-leading than CPI is. (Or less lagged?)
- adam_arthur 4y agoYou're right, they technically use Core PCE, rather than Core CPI. But if you look at a chart of the two they are very tightly correlated. They can be used pretty much interchangeably as an inflation measure, methodology not different enough to create material differences.