Journal Article
Despite High Inflation, Longer-Term Inflation Expectations Remain Well Anchored
Abstract: The Federal Reserve’s long-run 2 percent inflation target is intended to prevent periods of high inflation from becoming embedded in longer-term inflation expectations. However, inflation has remained above the Fed’s target for over three years, increasing the risk that longer-term inflation expectations could become unanchored. Building on our previous research, we study recent market reactions to inflation news and find that longer-term inflation expectations appear to remain well anchored.
Keywords: inflation; inflation target; inflation expectation;
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https://www.kansascityfed.org/Root/documents/10203/EconomicBulletin24BundickSmith0531.pdf
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Provider: Federal Reserve Bank of Kansas City
Part of Series: Economic Bulletin
Publication Date: 2024-05-31
Pages: 4