Federal Reserve's Mussa: Government Shutdown May Affect CPI, PCE Inflation Seen as Better Indicator

Federal Reserve official Mussa has indicated that the ongoing government shutdown could lead to a downward shift in the Consumer Price Index (CPI), with potential effects lasting until April. According to Jin10, Mussa emphasized that the Personal Consumption Expenditures (PCE) inflation measure is a more reliable indicator for assessing economic conditions. The remarks come amid concerns about the broader implications of the shutdown on economic metrics and policy decisions.