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Navigating Inflation and Economic Indicators
This chapter explores the complexities of measuring inflation through the Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCE) deflator, particularly how real estate costs significantly influence these metrics. The discussion also highlights the Federal Reserve's reactive strategies amidst fluctuating economic data and the challenges in achieving a 2% inflation target. Furthermore, the speakers analyze the interconnectedness of labor market trends and inflationary pressures, offering insights into the potential future of economic policy.