"We're going to deliver 2% inflation and not a whisper more," Warsh said. "But to achieve that, I'm looking at a broader set of inflation data than PCE." The personal consumption expenditures price index, or PCE, has long been the Fed's preferred inflation gauge, and is used by policymakers in their forecasts. JPMorgan's strategists recommended that clients wager on an increase in inflation expectations — via the five-year-forward price for five-year inflation swaps. There are only two: the PCE price index and the CPI.