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wishstar

(5,833 posts)
11. Warsh wants to change how inflation numbers are used by Fed
Fri Apr 24, 2026, 12:48 PM
Yesterday
https://finance.yahoo.com/economy/policy/article/warsh-says-he-wants-the-fed-to-adopt-a-new-approach-to-measuring-inflation-100100867.html

"Warsh favors using “trimmed averages” of inflation, he told Senate lawmakers during his confirmation hearing this week. The trimmed mean and median remove outliers. Both the Dallas Fed and the Cleveland Fed release a trimmed average inflation gauge that excludes outlier data — both high and low — to provide a clearer picture of prices.

Warsh said that the current underlying trend of inflation is “somewhat improving” and looks “quite favorable” when examining so-called trimmed measures of inflation. The Dallas Fed trimmed mean PCE is currently 2.3%, while the Cleveland Fed median PCE is 2.8%. — both lower than the latest reading of core PCE, which is at 3% and expected to increase."

So in order to justify rate cuts, he wants different averages used that will show inflation as lower, instead of the core PCE which is higher.

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