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The Bureau of Economic Analysis is revising the methodology behind the Federal Reserve's preferred inflation gauge, a change that will produce a lower reported reading of that measure.
The revision is expected to ease pressure on the central bank to raise interest rates, putting rate policy expectations in focus for bond and money markets.
The adjustment and its mechanics The Bureau of Economic Analysis, the federal agency that compiles the price data the Federal Reserve follows most closely, is reworking the framework behind its headline inflation measure.
When the new methodology takes effect, the reported number will come in lower than it would have under the prior approach.
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