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Anna Wong highlights that core PCE inflation has remained on track at around 2 percent over the past few months.
She also notes that Warsh’s PCE inflation diffusion metric declined in August, as predicted earlier. Wong questions whether Warsh’s reaction function may be using the wrong sign, raising concerns about the appropriateness of the current analytical framework.
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Wong has previously questioned the influence of temporary factors on policy, referring to Janet Yellen's remarks on a one-off inflation drop in 2017. She has also noted Aramco’s use of an internal tanker fleet to manage war risk insurance in-house, describing it as a strategic advantage for the company. These earlier observations reflect her attention to structural factors shaping economic metrics and policy decisions.