The Fed Invents ‘Supercore Inflation’ & The Best Investment Advice Ever

The Fed’s Latest Measure of Inflation is a New Buzzword: Supercore Inflation

The Money Wise guys are back in the studio with another candid episode featuring plenty of analysis and critical questions. They start with last week’s numbers from Wall Street, which saw the Dow down slightly, the S&P 500 down slightly, and the NASDAQ up. All three major indices remain up YTD. The guys are discussing the F Word today - that's right, the Federal Reserve was chock full of data points in their most recent communications, including the invention of a new measurement for inflation. It’s called “supercore inflation” and it seems to replace the previous data points the Fed used to make decisions on monetary policy (Core CPE and CPI). The guys discuss why the Fed has moved the goalposts yet again, getting critical about the decision to use supercore inflation as a metric, and looking at the pros and cons.

A Primer on Supercore Inflation

In the past, the Fed used Core PCE as a measure of inflation, which focused on household goods minus food and fuel. Then, they moved to the Consumer Price Index (CPI), which includes goods and services plus food and fuel. Supercore inflation, however, strips out food, fuel, and housing and focuses only on goods inflation and services inflation. You can learn more about supercore inflation in this recent Forbes article and in this CNN article.

In the second hour, the Money Wise guys share The Best Investment Advice Ever. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com, where you can also learn more about the Money Wise guys or take advantage of a portfolio review and analysis with Davidson Capital Management. We have financial advisors in San Antonio & Corpus Christi ready for you to schedule a call.