Wells Fargo Senior Economist Sarah House on CPI Release

The transcript discusses the persistent inflation pressures and the Federal Reserve's hawkish stance to control it. It highlights the challenges in reducing core PCE inflation to 4% by year-end, with factors like base effects and demand for services playing a role. The discussion also covers the impact of the pandemic, the Ukraine war, and fiscal policies on inflation. The Fed's monetary policy, including potential interest rate hikes, is examined as a tool to manage inflation without triggering a recession. The role of the neutral rate and labor market dynamics in shaping economic outcomes is also explored.

How does the speaker differentiate between the inflationary trends of goods and services?

What potential scenarios could allow the Fed to manage inflation without triggering a recession?

What is the significance of the neutral rate of interest in the context of the Fed's monetary policy?