Fed's Inflation Metrics Under Fire: A New Approach?

Kevin Warsh, a former Federal Reserve governor, recently suggested that policymakers use a more direct approach to measuring inflation. According to The Economist's Free Exchange transcript from September 26, 2026, Warsh proposes focusing on the underlying rate of inflation rather than relying on current GDP or other metrics. He argues that this would provide a clearer picture of price movements and help guide monetary policy decisions.

However, another economist, Arthur Burns, was quoted as saying that pinning down the underlying rate of inflation may be more challenging than Warsh thinks. The article does not specify what measures Burns suggests using instead.