Inflation Expectations No Longer “Well Anchoredâ€
Market-and survey-based inflation expectations data increasingly contradict the Fed’s stance – underlined in the latest Fed minutes – that medium- and longer-term inflation expectations remain “well anchored.” In fact, those inflation expectations have not been this low since the depths of the Great Recession.
ECRI’s latest study reviews these issues in detail, providing insight into what the recently-unmoored inflation expectations mean for Fed policy.