The new Fed Chair, Kevin Warsh, brings unconventional views on inflation measurement and has expressed a preference for trimmed measures, at a time when inflation has remained above target for five years.
In the current environment, the Dallas Trimmed PCE exhibits a downward bias following a succession of supply-side shocks since 2020 and was also slow to capture the 2021 inflation surge. A shift in the Fed's preferred inflation gauge could therefore raise credibility concerns.
2023 marks BCP’s 60th anniversary. On this special occasion, we would like to convey our sincere thanks to our valued clients and partners whose unwavering trust in our institution has been the lifeblood of our daily commitment.
