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;

Access Documents

File(s): File format is application/pdf
Description: Full Text


Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Economic Bulletin

Publication Date: 2024-05-31

Pages: 4