As storied money manager Stan Druckenmiller said last week, referring to the Fed’s preoccupation with the PCE:
“Well, first of all, there’s 14 recognized measures of inflation. Twelve of them are above 2%. Their preferred measure, the core PCE is at 1.7%. The risks they are taking with regard to misallocation of resources, bubbles, all that stuff because something is at 1.7% as opposed to two, and now they’re talking about a makeup period?”
