Federal Reserve's New Inflation Data is 'Useless,' Says Otavio Costa: Inside Fed's Pivot To Excuse Lower Rates

Benzinga05-04 15:38

The controversy centers on the St. Louis Fed’s recent promotion of the Trimmed-Mean PCE inflation rate—a metric closely associated with former Fed Governor Kevin Warsh. Data released for March 2026 ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2632939132?lang=en_US&edition=fundamental","thumbnail":"https://cdn.benzinga.com/files/images/story/2026/05/04/Headquarters-Of-The-Federal-Reserve-In-W.jpeg?optimize=medium&dpr=2&auto=webp&width=260","is_english":true,"pubTime":"2026-05-04 15:38","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2632939132","market":"nz","top_or_hot":-1,"title":"Federal Reserve's New Inflation Data is 'Useless,' Says Otavio Costa: Inside Fed's Pivot To Excuse Lower Rates","media":"Benzinga","content":"<div>\n<p>The controversy centers on the St. Louis Fed’s recent promotion of the Trimmed-Mean PCE inflation rate—a metric closely associated with former Fed Governor Kevin Warsh. Data released for March 2026 ...</p>\n\n<a href=\"https://www.benzinga.com/markets/economic-data/26/05/52240643/federal-reserves-new-inflation-data-is-useless-says-otavio-costa-inside-feds-pivot-to-excuse-lower-rates\">Source Link</a>\n\n</div>\n","source":"benzinga_hot_news","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Federal Reserve's New Inflation Data is 'Useless,' Says Otavio Costa: Inside Fed's Pivot To Excuse Lower Rates</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nFederal Reserve's New Inflation Data is 'Useless,' Says Otavio Costa: Inside Fed's Pivot To Excuse Lower Rates\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-05-04 15:38 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/markets/economic-data/26/05/52240643/federal-reserves-new-inflation-data-is-useless-says-otavio-costa-inside-feds-pivot-to-excuse-lower-rates><strong>Benzinga</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The controversy centers on the St. Louis Fed’s recent promotion of the Trimmed-Mean PCE inflation rate—a metric closely associated with former Fed Governor Kevin Warsh. Data released for March 2026 ...</p>\n\n<a href=\"https://www.benzinga.com/markets/economic-data/26/05/52240643/federal-reserves-new-inflation-data-is-useless-says-otavio-costa-inside-feds-pivot-to-excuse-lower-rates\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"TMF","symbol_name":"3倍做多20年期以上国债ETF-Direxion","start_time":0,"source_url":"https://www.benzinga.com/markets/economic-data/26/05/52240643/federal-reserves-new-inflation-data-is-useless-says-otavio-costa-inside-feds-pivot-to-excuse-lower-rates","article_id":"2632939132","we_media_id":null,"thumbnails":["https://cdn.benzinga.com/files/images/story/2026/05/04/Headquarters-Of-The-Federal-Reserve-In-W.jpeg?optimize=medium&dpr=2&auto=webp&width=260"],"rights":{"source":"benzinga_hot_news","url":"https://www.benzinga.com/markets/economic-data/26/05/52240643/federal-reserves-new-inflation-data-is-useless-says-otavio-costa-inside-feds-pivot-to-excuse-lower-rates","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2632939132","pubTimestamp":1777880280,"columns":[],"sourceInfo":{"source_id":"benzinga_hot_news","name":"Benzinga"},"weMediaInfo":null,"summary":"Investor Otavio Costa slams the Fed's Trimmed-Mean PCE as a \"useless\" metric designed to mask rising costs and justify premature rate cuts.","collect":0,"end_time":0,"defaultTopTitle":"benzinga.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"TMF":"3倍做多20年期以上国债ETF-Direxion","FAZ":"三倍做空金融ETF-Direxion","TIP":"通胀债券指数ETF-iShares Barclays","SKRE":"TUTTLE CAPITAL DAILY 2X INVERSE REGIONAL BANKS ETF","EDV":"美国延期国债ETF-Vanguard","KBWB":"银行ETF-PowerShares","IAT":"安硕美国地区银行ETF","TBT":"债券20+美国债指数ETF-ProShares两倍做空","BND":"债券指数ETF-Vanguard美国","XLF":"金融ETF","BSV":"短期国债指数ETF-Vanguard","IEF":"债券指数ETF-iShares Barclays 7-10年","TLTW":"iShares 20+ Year Treasury Bond Buywrite Strategy ETF","UBT":"债券20+美国债-ProShares两倍做多","ZROZ":"PIMCO 25+ Year Zero Coupon U.S","SCHO":"嘉信短期美国国债ETF","JPST":"JPMorgan Ultra-Short Income ETF","HYG":"债券指数ETF-iShares iBoxx高收益公司债","MUB":"美国市政债ETF-iShares","AGG":"债券指数ETF-iShares Barclays综合国债","IEI":"iShares Barclays 3-7 Year Trea","USHY":"iShares Broad USD High Yield Corporate Bond ETF","VCSH":"美国短期公司债-Vanguard","LQD":"债券指数ETF-iShares iBoxx投资级公司债","VGSH":"美国短期国债ETF-Vanguard","BOXX":"ALPHA ARCHITECT 1-3 MONTH BOX ETF","MINT":"PIMCO Enhanced Short Maturity Exchange-Traded Fund","TLH":"iShares安硕10-20年国债ETF","GOVT":"iShares安硕核心美国国债ETF","VCIT":"美国中期公司债-Vanguard","BIL":"债券指数ETF-SPDR Barclays美国1-3月国债","VGIT":"中期国债ETF-Vanguard","TYO":"3倍做空7-10年期国债ETF-Direxion","UDN":"做空美元指数-PowerShares","NGHT":"Nicholas Bitcoin and Treasuries AfterDark ETF","UUP":"美元ETF-PowerShares DB","TBIL":"US Treasury 3 Month Bill ETF","SHV":"美国短期国债ETF-iShares","KBE":"银行指数ETF-SPDR KBW","GOLY":"Strategy Shares Gold Enhanced Yield ETF","BOND":"Pimco Total Return ETF","VGLT":"美国长期国债ETF-Vanguard","PBDC":"Putnam Bdc Income ETF","SHY":"债券指数ETF-iShares Barclays 1-3年国债","GBIL":"Goldman Sachs Access Treasury 0-1 Year ETF","KRE":"区域银行指数ETF-SPDR KBW"},"translate_title":"奥塔维奥·科斯塔表示，美联储新的通胀数据“毫无用处”：美联储为降低利率辩护的转向内幕","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SHY":1.5,"TLTW":1.5,"VCIT":1.5,"UBT":1.5,"SHV":1.5,"BND":1.5,"XLF":0.6,"BSV":1.5,"HYG":1.5,"TMF":1.5,"VGIT":1.5,"VGSH":1.5,"FAZ":1.5,"USHY":1.5,"NGHT":1.5,"IEI":1.5,"TIP":1.5,"BIL":1.5,"ZROZ":1.5,"TLH":1.5,"IAT":0.6,"TYO":1.5,"UUP":1.5,"MINT":1.5,"TNmain":0.6,"JPST":1.5,"VCSH":1.5,"KBE":1.5,"MUB":1.5,"BOND":1.5,"SKRE":1.5,"EDV":1.5,"UDN":1.5,"TBIL":1.5,"GOVT":1.5,"ZFmain":0.6,"UBmain":0.6,"ZTmain":0.6,"BOXX":1.5,"AGG":1.5,"GOLY":1.5,"KBWB":0.6,"PBDC":1.5,"TBT":1.5,"KRE":0.6,"VGLT":1.5,"LQD":1.5,"IEF":0.6,"SCHO":1.5,"GBIL":1.5},"content_text":"The controversy centers on the St. Louis Fed’s recent promotion of the Trimmed-Mean PCE inflation rate—a metric closely associated with former Fed Governor Kevin Warsh. Data released for March 2026 showed this measure ticking up only slightly to 2.36%.\nHowever, critics argue this alternative measure of core inflation intentionally masks the reality of surging prices by stripping out extreme price fluctuations from the data.\n“The St. Louis Fed now posting Kevin Warsh's useless inflation metric,” Costa stated recently on social media. “That's how far these guys have to go to justify cutting rates while inflation is picking back up.”\nCosta highlighted a stark market divergence to prove his point: while the trimmed-mean metric paints a picture of stabilizing prices, the broader commodities sector is experiencing a massive upward spike.\nBy actively ignoring volatile categories—which invariably affect essential consumer goods—critics argue the metric fails to reflect the true economic pressures facing everyday households.\nFor Costa, this reliance on heavily modified data signals a much deeper structural issue: the complete erosion of the central bank’s autonomy.\n“You either crush the system with high rates, or you tolerate inflation and force rates lower. This isn't a debate. It's math,” he warned.\nThe Trimmed-Mean PCE is calculated by discarding the most extreme individual price changes at both ends of the spectrum each month.\nWhile Fed officials claim it outperforms conventional measures by cutting through the noise, critics argue that in the current economic climate, ignoring these extremes means ignoring the lived reality of the consumer.\nWith long-term inflation expectations quietly jumping to two-year highs, market observers are warning that the Fed's reliance on what Costa calls a “useless” metric may ultimately damage the institution’s remaining credibility.\nThe S&P 500 index has advanced 5.42% year-to-date. Similarly, the Nasdaq Composite index was up 8.09%, and the Dow Jones gained 2.31% YTD.\nMeanwhile, Dow tracker, State Street SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA), fell 0.33% to close at $495.02 on Friday.\nDisclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.\nPhoto courtesy: Shutterstock\nTo add Benzinga News as your preferred source on Google, click here.","kind":"news","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.42.1","shortVersion":"4.42.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2632939132","isCrawlerRequest":true}