The Fed’s last gut check

Marketplace

News, Business

4.6 • 8.5K Ratings

🗓️ 9 September 2024

⏱️ 29 minutes

🔗️ Recording | iTunes | RSS

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Summary

When the August consumer price index is released Wednesday, it’ll be the final major inflation report before the Federal Reserve’s policymakers meet next week, when they’re expected to cut interest rates. But how important is the CPI as a gut check this time around? Also in this episode, backup generators are too expensive for many older Texans who need them most, China makes electric vehicles that seem impossibly cheap, and U.S. leaders show interest in a sovereign wealth fund.

Transcript

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0:36.3	marketplace 22. On the program today differences and why they matter. From American public media, this is
0:47.8	marketplace. In Los Angeles, I'm Ka Rizdell. It is Monday, today the 9th of September.
1:02.1	Good as always to have you along everybody the program today will be a study in
1:08.0	Differences differences in how we measure inflation in this economy and differences in how Chair Powell and the
1:14.1	gang at the Federal Reserve balance their two responsibilities which are of
1:18.2	course stable prices and maximum employment. But let me back up.
1:24.4	We're going to get a fresh reading on inflation Wednesday morning, the Consumer Price Index.
1:29.2	The CPI is not, as regular and perhaps even occasional listeners will know the Central Bank's
1:34.6	preferred measure of prices in this economy. That's the personal consumption
1:38.6	expenditures price index, the PCE, the differences between which those two coming up later.
1:45.8	But this CPI is going to be the last inflation reading the Fed is going to get before it meets
1:51.7	next week, which makes it thus the Fed's last gut check on its
1:55.3	much anticipated rate cut. The question at this point in the game, and most particularly after
2:01.8	the not quite as clear as anybody had hoped
2:04.2	unemployment report that we got last Friday. Question is how important is one
2:10.2	inflation data point.
2:13.0	Marketplace's Kristin Schwab gets us going
2:15.2	with how the Fed is balancing the differences
	...

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