Finally, Fed Chair Powell gets it right

1 min read

Now, he finally says the Fed is ready to take “forceful and rapid” action.  If he had said that in March 2021, he could have taken “forceful and gradual” action. The best measure of consumer inflation is the Consumer Price Index (CPI), which truly reflects the increase in prices faced by the average consumer.  The Fed looks at a different consumer inflation measure called the Personal Consumption Expenditure (PCE) which measures price increases and anticipated consumer reaction to those increases. The PCE will always be lower than the CPI and is not an accurate indicator of price increases facing consumers…....

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Michael Busler Michael Busler, Ph.D. is an economics expert, a public policy analyst and a Professor of Finance at Stockton University. He offers analysis and free market solutions to economic and public policy problems that are consistent with the principles of freedom and Democracy.

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