> if policy was determined on non-Core, then one month the Fed would have to raise/lower rates, and then the very next month it would have to do the opposite.
Well, except Fed policy doesn’t really use CPI (Core or otherwise) at all. The Fed's evaluation of prices that informs monetary policy centers on the PCE, not CPI.
And while that's their key indicator, their actual analyiss underlying policy decisions isn't just applying a fixed function of current top-level indicators to get a monetary policy as output; there is considerable analysis of trends and what is going on below the top-level indicators, etc.
You don't need to board consisting of multiple Senate-confirmed officers with large supporting expert staff to apply a simple function of headline indicators from other agencies to produce an output, so the BLS not separately calculating and publishing core CPI wouldn't effect the Fed doesn't use CPI, and does a level of analysis with the indicators it does use that if it thought something like the particular aggregate used for “Core” was necessary and not in the publication, they’d just recreate it from the lower-level components.
Well, except Fed policy doesn’t really use CPI (Core or otherwise) at all. The Fed's evaluation of prices that informs monetary policy centers on the PCE, not CPI.
And while that's their key indicator, their actual analyiss underlying policy decisions isn't just applying a fixed function of current top-level indicators to get a monetary policy as output; there is considerable analysis of trends and what is going on below the top-level indicators, etc.
You don't need to board consisting of multiple Senate-confirmed officers with large supporting expert staff to apply a simple function of headline indicators from other agencies to produce an output, so the BLS not separately calculating and publishing core CPI wouldn't effect the Fed doesn't use CPI, and does a level of analysis with the indicators it does use that if it thought something like the particular aggregate used for “Core” was necessary and not in the publication, they’d just recreate it from the lower-level components.