Matt Klein documents a subtle change in methodology at the Fed. Instead of relying on “core” measures that exclude the most volatile prices to predict inflation, they are now focusing on a much smaller category of prices they think most predictive.

Rather than just ignoring the worst, they are looking only at what they deem the best. For better or for worse. https://open.substack.com/pub/matthewcklein/p/the-fed-is-getting-less-sanguine?utm_source=direct&r=1nb11&utm_campaign=post&utm_medium=web