What Is the PCE and Why Is It the Fed's Favorite Inflation Gauge?

Published on August 6, 2026

When we talk about inflation, we usually focus on the Consumer Price Index (CPI). However, the Federal Reserve’s “preferred” inflation measure is the Personal Consumption Expenditure (PCE) index. What’s the difference and why does the Fed prefer the PCE?

Continue reading on website
Other news

Morningstar: Investors Miss Out on 12% of Fund Returns Over Decade

August 6, 2026
The return gap was smallest for investors in U.S. equity and allocation funds.

Why Portfolio Overlays Matter in Uncertain Market Environments

August 6, 2026
This year has offered a vivid reminder of how quickly market conditions can shift—from policy uncertainty, to a sharp geopolitical shock, to a focus on an AI-driven rally. As the themes of the day changed, the case for an overlay persisted.