To determine whether the goal of stable prices is being achieved, the Federal Reserve monitors
A)the GDP price deflator.
B)the core PCE deflator inflation rate.
C)the producer price index.
D)the CPI.
E)the core GDP deflator inflation rate.

Question

Quizplus · Accepted Answer

The Federal Reserve primarily monitors the core Personal Consumption Expenditures (PCE) deflator inflation rate to assess price stability, as it excludes volatile food and energy prices, providing a clearer view of underlying inflation trends.

To Determine Whether the Goal of Stable Prices Is Being