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NY Fed Inflation Expectations Bounce In U.Michigan Catch-Up

US DATA
  • The firming in NY Fed consumer inflation expectations in Oct meant a sharper version of the rise seen in the U.Mich survey although with the latter making up for it with a further increase into November’s preliminary report on Friday – see chart below.
  • 1Y expectations rose +50bps, 3Y +20bps and the relatively new 5Y measure also +20bps.
  • The 3Y of 3.1% is the highest since July but still far off Oct'21 highs of 4.2%.
  • Recall Gov. Waller on Sunday saying inflation expectations seem to be holding but worried they could become unhinged, looking at expectations a couple years out.

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