US Inflation expectations are near multi year lows

With all eyes on the Federal Reserve this week, inflation-related data points are in investors’ crosshairs. Going through several reports and market expectations, it is certainly tough to find much evidence of inflation anywhere in the US economy. The preferred inflation measure during the Ben Bernanke led Fed has been at or below 2% for the past month. The five-year, five-year forward breakeven inflation rate currently sits at just 1.97%. 2% was a key level under the previous Fed regime as quantitative easing programs were started, or rumored to start, after inflation expectations hit this level. However, it is clear the Fed under Dr. Yellen does not put as much weight on this metric as the five-year, five-year forward breakeven inflation rate has bounced around 2% for almost the entirety of 2015. Click (VIEW LINK) to read more about inflation expectations and the Fed

2 topics

Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.


No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.