Fed Rate Cut in This Consumer Environment Defies Logic: RBC's Porcelli

The transcript discusses the outlook for the unemployment rate, wage pressures, and inflation in the US. It highlights differing views on inflation trends and examines various measures like the trimmed mean PCE. The conversation also covers monetary policy, emphasizing the challenges of achieving precise inflation targets. The potential impact of a 25 basis point cut by the Fed is debated, considering the current economic conditions and consumer behavior.

What are the current trends in core services inflation as discussed in the text?

What potential policy actions are suggested to avoid a policy mistake regarding interest rates?