The Fed's preferred measure of inflation is
A)the index of leading economic indicators.
B)the core personal consumption expenditures index.
C)the consumer price index.
D)the GDP deflator.
E)the producer price index.

Question

Quizplus · Accepted Answer

The Federal Reserve's preferred measure of inflation is the core personal consumption expenditures (PCE) index because it excludes volatile prices of food and energy, giving a better picture of underlying inflation trends.

The Fed's Preferred Measure of Inflation Is