Kevin Warsh Advocates for New Inflation Measurement Approach at Federal Reserve
Kevin Warsh, President Trump’s nominee for Federal Reserve Chair, has proposed a new framework for measuring inflation. During his confirmation hearing, Warsh emphasized the need to reform the Fed’s analysis of price changes, suggesting the use of 'trimmed averages' to provide a clearer picture of inflation. This method involves removing outliers to focus on median price changes. Warsh argues that the current Personal Consumption Expenditures (PCE) index, which excludes volatile food and energy prices, offers only a rough estimate of inflation. He believes that a broader review of data, including private sector sources, is necessary to better understand inflation trends. 
