Macro Minute

Since PCE inflation remained high at the end of 2025, this post explores these elevated price pressures, which otherwise experienced slower growth at year-end in the last decade.

Following the COVID-19 pandemic recession, earnings growth for lower-income earners significantly outpaced the median earner. The situation has now reversed with their earnings growth below the median, but the implications for earnings inequality are complicated.

Has the slowing in the labor market been common across states? Some states may be bearing the brunt of a softening labor market more than others.

This week's post explores market- and nonmarket-based prices, including the finding that the bulk of total and core PCE is comprised of market-based components, although the share has been decreasing.

As of October, the average effective tariff rate for the U.S. stood at 11.4 percent, which would be the highest rate since 1943.