But given the general uncertainty around trade policy, one should begin looking more closely at short-term inflation expectations, which have been on the rise. … READ MORE >
five-year forward inflation expectation rate
U.S. inflation expectations are well anchored as Fed nears decision
Our read on the economy, hiring and the labor market suggests that the Fed can ease rates without dislodging well-anchored expectations and still establish price stability. … READ MORE >
Inflation expectations: Have they reached a peak?
The recent decline in yield most likely represents a rethinking by market participants and investors on the risk of rising inflation to the economic outlook. … READ MORE >
Powell statement: Market challenging Fed’s credibility on inflation targeting
The knee-jerk market response that sent the 10-year Treasury yield to 1.54% during Thursday’s speech by Federal Reserve Chairman Jerome Powell implies that the Fed may have to act to dampen yields at the long end of the curve. … READ MORE >