Kevin Warsh Triggers Debate Over Measures of US Inflation
The nominee to chair the Fed says data that’s being used to judge consumer prices is imperfect.
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I’m Chris Anstey, a senior economics editor in Boston, and today we’re looking at debate over how best to measure US inflation. Send us feedback and tips to ecodaily@bloomberg.net. And if you aren’t yet signed up to receive this newsletter, you can do so here.
Current Federal Reserve policymakers have sometimes highlighted challenges with regard to the main measures of US inflation. One is that it takes a long lag before changes in home leases get reflected in the CPI gauge. Another, for a time, was the anomaly of “imputed” prices pushing up PCE inflation while “market-based” price estimates looked softer.