Powell’s balancing act

27 February 2018

 

For anyone who is unaware of the Federal Reserve's preferred measure of inflation, new Federal Reserve chair Jerome Powell spelled it out during his inaugural testimony to the U.S. House Financial Services Committee. It was his first address to Congress since succeeding Janet Yellen. His attitude and that of Janet Yellen of the importance of core private consumption expenditure (PCE) inflation was clear. “The core PCE price index, which excludes...

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