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