Warren Presses Commerce and BEA on Inflation Metric Changes

Senator Elizabeth Warren is pressing the Commerce Department and the Bureau of Economic Analysis (BEA) over recent changes to key U.S. inflation metrics, which could impact interest-rate decisions and regional economic analysis.

The BEA announced revisions on June 24 to calculating the Personal Consumption Expenditures price index (PCE), a preferred inflation gauge for the Federal Reserve.

Economists estimate that these revisions could lower reported inflation in key service categories, including portfolio management, legal services, and computer software and accessories.

Warren is concerned about the lack of consultation with key experts before making these changes, which she believes could have significant consequences for American families and workers.