Here are the hidden flaws in Warsh’s new way of tracking inflation
Why now
Thesis: Debate over inflation measurement affects rate path bets
Catalyst to watch: Fed adoption or rejection of the new gauge
Main risk: Measurement debate adds noise, not clarity
Why it matters
If a new inflation gauge lacks predictive power, policy signals built on it may misprice rate expectations.
Details
Economists at Nomura say the new way Kevin Warsh is tracking inflation doesn’t have better predictive power than core readings.
Related assets & topics
InflationFederal ReserveSources
- marketwatch · 2026-09-23 09:28 UTC