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Nick Timiraos, chief economics correspondent at Wall Street Journal, highlights a notable change in the Federal Reserve's policy discussions as attention shifts from debating potential rate cuts to considering whether a rate hike is necessary.
Timiraos points out that today's meeting is especially significant as it marks Kevin Warsh's first as chairman, a choice made by President Donald Trump to pursue lower interest rates.
Earlier this year, forecasters expected core PCE inflation to reach 3.3 percent in April, the highest level since November 2023, according to Timiraos. Warsh has also voiced support for using trimmed inflation measures in policy assessments. The Dallas Fed's trimmed indicator was at 2.3 percent in April, Warsh noted in recent comments.