Posted 11/12/2023, 12:30:03 PM
Fed Concerned About Rising Inflation Expectations Among Americans
- Fed worried Americans getting used to high inflation as expectations rise
- University of Michigan survey shows long-run inflation views highest since 2011
- If inflation expectations become "unanchored", Fed may have to raise rates more aggressively
- Fed wants to maintain public confidence it can get inflation back to 2% target
- Key for Fed is direction of travel on inflation, not necessarily hitting 2% before trip over