In the first of a run of key readings on inflation, consumer spending and sentiment that could determine whether the U.S. central bank presses on with interest rate hikes or pauses to measure the fallout from bank failures that prompted it to take emergency action, the New York Fed's Survey of Consumer Expectations on Monday showed respondents said inflation would stand at 4.2% a year from now.
That's a notable drop from the 5% expectation in January and the lowest reading since the 4% registered in May 2021. Meanwhile, the expected level of inflation three years from now held steady at 2.7%, matching the level last seen in October 2020, while expected inflation five years from now was seen hitting 2.6%, up from January's 2.5%.
The Labor Department will release Consumer Price Index data for February on Tuesday. Economists polled by Reuters expect CPI will slow to a 0.4% gain on a month-to-month basis and to a 6% gain on an annual basis. Excluding food and energy prices, CPI is also forecast to cool to a 0.4% rise on a monthly basis, with the annualized rate ticking down to a 5.5% gain.
Does that mean I can afford eggs again?
Don’t worry, when we get higher inflation they’ll just use their standard trick of calling it “unexpected.”
There is something darkly hilarious about the Fed playing Chicken Little, “inflation is coming, we gotta get poor people out of jobs,” but then interest rates hurt some VCs and suddenly they’re slamming on the brakes, floating free money, and inflation is no longer a concern.
But Republicans were going to fix it... Right after they investigate HB.
The US is now playing for the dollars not pegged to the gold standard printed by Federal Reserve Bank since 1971.
'Transitory'
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Source: WSJ - 🏆 98. / 63 Read more »