The Massachusetts Democrat wants more detail on Bureau of Economic Analysis revisions that could trim the PCE inflation reading by about 0.2 percentage points when the August data is released in September.
Senator Elizabeth Warren called for greater transparency around planned revisions to the personal consumption expenditures price index, the Federal Reserve's preferred inflation gauge, as markets assess a methodology change that could lower the inflation reading by about 0.2 percentage point. The new calculation method is set to be applied starting with August data, due in September, and will change how prices are measured for software, legal services and investment advisory services. The revision will not affect the consumer price index. Warren said more detail is needed on the change, though she did not present evidence of political interference. Investors are watching because a lower PCE reading under the revised approach could affect expectations for Federal Reserve interest-rate decisions.