It has long been said that the Fed’s favorite measure of inflation is Core PCE. But has that changed? The Fed raised rates by 75bps at its June meeting. Expectations were only for a 50bps hike. That is, until the Fed leaked the news to the WSJ that it was going to hike 75bps just days before the decision. Why did the Fed change its collective mind? The CPI print for May was 8.6% YoY and the Michigan Consumer Inflation Expectations Index was higher than expected. During the press conference following the FOMC decision, Fed Chairman Powell said that the Fed was concerned about ALL inflation (not just ex- food and ... (full story)