SFS Insights: Inflation Expectations Falling Rapidly
Inflation Expectations Coming Down
Both survey-based and market-based measures of inflation expectations are falling quickly, and the Federal Reserve (Fed) will soon be talking about this as an important reason why they can allow themselves to be more dovish, with looser, more accommodating policy, and ultimately start cutting rates, see chart below.
FRBNY- Federal Reserve Bank of New York
Source: FRBNY, Haver Analytics, Apollo Chief Economist