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Mike Konczal: Fed shifts focus to PCE measure over CPI in 2000

Mike Konczal: Fed shifts focus to PCE measure over CPI in 2000
Fed changes reporting to PCE index

The U.S. Federal Reserve began emphasizing the Personal Consumption Expenditures (PCE) index over the Consumer Price Index (CPI) in its reports starting in 2000.

Mike Konczal points out that the Fed provided a footnote at the time explaining its rationale for this transition, which continued into its formal target in the 2010s.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

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