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Federal Reserve Policy Update: Following Through on the Powell Pivot
In December of last year, the Fed moved from discussing supercore inflation, which is core services inflation excluding housing, to focusing on more mainstream inflation measures including the Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE). Both of these measures have shown more progress on taming inflation than supercore. At the same time, the Fed announced that it was expected to reduce short-term interest rates by 0.75% during 2024. This shift became known as the Powell Pivot, named after Fed Chairman Jerome Powell, who stated that the Fed will begin reducing short-term interest rates ... (full story)