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Atlanta's Bostic: "Real Danger" Of Inflation Expectations Rising To 4+%


In comments published on the Atlanta Fed website today, Pres Bostic suggests US inflation expectations could potentially become "untethered" and "unanchored", with a "real danger" of rising from around 2% to "say, 4 percent or higher"

  • Those comments don't appear to be aimed at implied market expectations but rather Bostic advertising the Atlanta Fed's Business Inflation expectations survey: "longer-run inflation expectations among businesses and consumers in fact have climbed, but not enough to suggest that expectations are dangerously unanchored. Still, the mostly pandemic-induced episodic price pressures could grind on long enough to fundamentally alter expectations. I definitely worry about that."
  • It's straightforward to see what he's talking about in this chart (also available on the Atlanta Fed site):

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