Notes on the Week Ahead

← Notes on the Week Ahead15 Jun · 13 min

The Inflation Outlook and Fed Policy under New Leadership

The Inflation Outlook and Fed Policy under New Leadership15 Jun13 min

Last Wednesday’s CPI report, while not a surprise, still showed a year-over-year inflation rate of 4.2% - higher than in any month since April, 2023. For investors, this raises a number of questions. First, is this the peak for U.S. inflation and, if it is, how fast will inflation fall from here? Second, are we looking at the right inflation rate, anyway, given differences between CPI and PCE deflators, headline and core measures and the new Fed Chairman’s preference for trimmed mean and median readings?