According to BlockBeats, Nick Timiraos, often referred to as the 'Federal Reserve's mouthpiece,' reported on December 19 that there has been a shift in the perception of inflation risks among Federal Reserve officials. In September, out of 19 officials, three believed that the risks to the core Personal Consumption Expenditures (PCE) inflation forecast were tilted to the upside, suggesting that if the forecasts were incorrect, they might be too low.
Today, the sentiment has changed significantly, with 15 out of the 19 officials now expressing concerns that the risks associated with the already revised upward core PCE inflation remain skewed to the upside. This indicates a growing consensus within the Federal Reserve that inflationary pressures could be more persistent than previously anticipated. The core PCE inflation is a critical measure for the Federal Reserve as it excludes volatile food and energy prices, providing a clearer picture of underlying inflation trends.