Incoming Fed Chair Kevin Warsh is reportedly pushing for alternative inflation metrics such as trimmed-mean and median CPI, which show inflation closer to 2.5%, versus the official PCE reading of 3.8%. If adopted, the shift could support a more dovish policy stance and increase the likelihood of rate cuts, even as the Fed's benchmark rate remains at 3.50%-3.75%. The debate comes as Fed officials remain divided. Some policymakers continue to warn inflation is still too high, while Warsh argues traditional measures may overstate underlying price pressures. Markets are watching closely because a lower inflation framework could push Treasury yields lower, weaken the dollar, and support risk assets. My take: the story isn't really about inflation data itself, but about which inflation data the Fed chooses to prioritize. A move from 3.8% inflation to a preferred measure near 2.5% would materially change the policy narrative and could become one of the biggest bullish catalysts for stocks and risk assets in the second half of the year.