![](https://cdn.steemitimages.com/DQmSfzDfKChdoA8dWM7JRRa38ugpQvKexfJBEtUr2jy1WQu/image.png)
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# This is the favorite inflation measure of the Fed
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- The American central bank is optimistic about the economic outlook. That is not surprising, because the American economy is still growing at a nice pace and the labor market is very strong. In addition, inflation is also on the rise. The Fed's favorite inflation measure even moves around the target of 2%.

- The general price increase, better known as inflation, can be calculated in various ways. The American central bank prefers the state of core inflation. This core inflation does not take into account the price increases of food and energy prices. And according to economists, this is therefore the best measure for measuring the real growth of the economy.

## More rate hikes are lurking
 
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![](https://cdn.steemitimages.com/DQmeDFqJMNxeCU8ujJh5SwtUUnD6DL4ZpYsEpAQw2GR8ywz/image.png)
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- Fed members may squeeze their hands right now, because core inflation looks particularly good. For example, on the graph above, taken from The Daily Shot, US core inflation is moving around the target of 2%; a level Draghi is jealous of.

- All economic ingredients are available for further interest rate increases. Despite the fact that Trump has indicated that he is not happy with the interest rate increases, Powell will most likely not attract much. The Fed must act 'independently'.
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