Kevin Warsh Pushes Trimmed PCE 2.3%

Kevin Warsh, former Fed Governor (2006‑2011) and Fed Chair nominee, stressed Fed independence and low inflation at a congressional hearing.
Warsh favors “trimmed PCE” (excludes top 31% and bottom 24% price components) as inflation gauge, currently 2.3% versus core PCE 2.8%.
KB Securities analysts describe trimmed PCE as a dovish “trend‑confirmation” tool, not a leading indicator, despite Warsh’s hawkish tone.
They argue the measure better captures inflation trends, citing 2021 surge, and suggests limited scope for immediate rate cuts.