Free Trial

MNI BRIEF: NY Fed - Long-Run Inflation Expectations Anchored

(MNI) WASHINGTON
(MNI) Washington

U.S. consumers' views of five-year-ahead inflation expectations have edged up only modestly to 3.16% in August from 3.00% in July 2019, suggesting long-run price expectations are as well anchored as they were before the start of the pandemic, New York Fed economists said in a blog.

"Our survey results not only suggest that the median long-run inflation expectation of consumers changed little over the past two years, but also that the entire distribution of long-run inflation expectations changed little," they wrote. "Even though the current surge in inflation has affected short- and, to a lesser extent, medium-term inflation expectations, it did not significantly affect the anchoring of long-run inflation expectations."

MNI previously reported that even though consumer views are currently more sensitive to incoming news than at other times, expectations remain anchored.

MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com
True
MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com
True

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.