Adjusted 10-Year TIPS-Derived Expected Inflation
This measurement of expected inflation is from the Cleveland Fed:
The upward trend at the end is not what the Fed would like to see, of course, but as the next graph shows, market participants expect further declines in interest rates as the Fed attempts to stabilize the economy with the consequence shown in the previous graph of higher inflation in the future:
Posted by Mark Thoma on Tuesday, January 8, 2008 at 02:05 AM in Economics, Inflation, Monetary Policy |
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