MNI BRIEF: Atl Fed: Firms' Inflation Expectations Fall to 2.8%

Firms' year-ahead inflation expectations have decreased to 2.8%, according to the latest survey of businesses in the Atlanta Fed region, showing a first downward move in expectations in nine months after reaching a record 3.0% in June.

Two-thirds of firms expect price changes over the next year, down from 79% in "normal times" and up from 54% over the last 12 months, the results of a special survey question showed.

Dallas Fed President Robert Kaplan told MNI in an interview first published Tuesday he has raised his inflation forecast for the remainder of the year, as a Fed model indicated that U.S. inflation is set to stay elevated. Fed Chair Powell is set to tell lawmakers Wednesday that inflation has increased notably and "will likely remain elevated in coming months before moderating."