• 723 days Will The ECB Continue To Hike Rates?
  • 723 days Forbes: Aramco Remains Largest Company In The Middle East
  • 725 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,125 days Could Crypto Overtake Traditional Investment?
  • 1,130 days Americans Still Quitting Jobs At Record Pace
  • 1,132 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,135 days Is The Dollar Too Strong?
  • 1,135 days Big Tech Disappoints Investors on Earnings Calls
  • 1,136 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,138 days China Is Quietly Trying To Distance Itself From Russia
  • 1,138 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,142 days Crypto Investors Won Big In 2021
  • 1,142 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,143 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,145 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,146 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,149 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,150 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,150 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,152 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Long-Term Inflation Expectations - April 27 vs. June 2, 2006

In his testimony to the JEC on April 27, 2006, Fed Chairman Bernanke stated: "The stability of core inflation is also enhanced by the fact that long-term inflation expectations--as measured by surveys and by comparing yields on nominal and indexed Treasury securities--appear to remain well-anchored." On April 27, the break-even spread between the yield on the Treasury 10-year note and the 10-year TIPS yield - a measure of investors' expectations about the 10-year CPI rate of inflation -- was 2.64%. On June 2, the break-even spread was 2.63%. For all intents and purposes, there had been no change in "long-term inflation expectations." Yes, those who respond to surveys but who don't place actual market bets have raised their inflation expectations. But are these expectations long term? Why the sudden change in tone of Fed rhetoric? I think Diane Swonk put her finger on it, so to speak, in her quotes in the June 7 edition of the Washington Post http://www.washingtonpost.com/wp-dyn/content/article/2006/06/06/AR2006060601324.html.

 

Back to homepage

Leave a comment

Leave a comment