PIMCO’s Clarida Says PCE Index Overstates US Underlying Inflation

Clarida's argument matters less as a forecast than as a signal of how the inflation debate is shifting toward measurement itself — whether the Fed's preferred gauge is overstating the underlying trend. Coming from a former vice chairman now inside a major asset manager, it carries weight with the same readers who parse Fed communications for policy direction. The open question is whether this framing gains traction among other Fed-adjacent voices, since a broad shift in how officials read PCE would shape rate expectations more than any single commentary.