The latest consumer data released by the Federal Reserve Bank of New York on 12InvestigationInflation expectations have dropped significantly. It will be a favorable wind for the Fed in its fight against inflation.
Three-year inflation expectations fell to 2.8% in August. It was 3.2% in July and 3.6% in June. After a year, it will drop to 5.7%. It was 6.2% in July. Inflation expectations five years on fell to 2%, down from 2.3% last month.
Three-year inflation expectations declined for the fourth consecutive month. It peaked at 4.2% in September and October 2021. This period coincides with the time when the US Federal Open Market Committee (FOMC) began to move to end monetary easing during the krona crisis. . At the time, the FOMC had signaled that it would soon begin phasing out monthly asset purchases. That tapering ended in March, when the FOMC turned to raising policy rates from zero.
Inflation expectations plummet
The survey shows substantial drops in the short, medium and long term
Source: Consumer Expectations Survey, Federal Reserve Bank of New York
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Original title:Inflation expectations in the US eased in August, the New York Fed says(extract)
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