Kevin Warsh Proposes Alternative Inflation Measurement Method
Kevin Warsh, Trump's nominee for Federal Reserve chair, proposed using trimmed average inflation measures to exclude extreme price shocks. Bank of America economist Aditya Bhave warned this approach could have unintended consequences, as excluded factors like food and energy might still influence policy. The current trimmed average inflation rate is lower than the core PCE, which Warsh views as more favorable.
Topics: Economic Policy Federal Reserve Inflation Kevin Warsh Trimmed Mean Inflation