Warren Demands Transparency on PCE Rule Change That Could Cut Inflation by 0.2 Point
Updated
Updated · en.bloomingbit.io · Aug 6
Warren Demands Transparency on PCE Rule Change That Could Cut Inflation by 0.2 Point
1 articles · Updated · en.bloomingbit.io · Aug 6
Summary
August PCE data due in September will use a new calculation method that market participants expect could lower the inflation reading by about 0.2 percentage point.
Elizabeth Warren called for more disclosure on the methodology change to the Federal Reserve’s preferred inflation gauge, saying the revision needs greater transparency.
The update changes how prices are measured for software, legal services and investment advisory services, but does not affect the consumer price index.
A lower PCE reading could shape how investors and policymakers read inflation trends because the index is the Fed’s main benchmark.