Journal Article
In Recent Years, Inflation Expectations Increased After Oil Shocks and Stabilized Only Once Monetary Policy Tightened
Abstract: Historically, U.S. households’ expectations for future inflation remained anchored after an oil price shock without significantly tighter monetary policy. Since 2010, however, oil price shocks have led household inflation expectations to increase more persistently, and expectations have only normalized after monetary policy tightened. This recent experience suggests monetary policy may play a role in stabilizing expectations after a shock.
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https://www.kansascityfed.org/research/economic-bulletin/in-recent-years-inflation-expectations-increased-after-oil-shocks-and-stabilized-only-once-monetary-policy-tightened/
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Provider: Federal Reserve Bank of Kansas City
Part of Series: Economic Bulletin
Publication Date: 2026-07-08
Pages: 4