Inflation Tolerance Archive

5 year tips 5 years forward and recent Fed speeches

[Skip to the end] 5yr Tips 5yr Forward The Fed watches this carefully in regard to inflation expectations, along with surveys and professional forecasts which have gone up considerably. The 5 year tips 5 years forward dipped a couple of months ago on the generally commodity sell off, then fell again for ...Read More

Vice Chair Kohn comment and today’s opening

Recent comment by Fed Vice Chair Donald Kohn: If longer-term inflation expectations were to become unmoored–whether because of a protracted period of elevated headline inflation or because the public misinterpreted the recent substantial policy easing as suggesting that monetary policy makers had a greater tolerance for inflation than previously thought–then I believe ...Read More

Excerpt from Kohn’s speech

My expectations for moderating inflation and limited spillover effects from commodity price increases depend critically on the continued stability of inflation expectations. The FOMC has never wavered on this all important aspect of monetary policy – they firmly believe inflation expectations are what causes a relative value story to turn into an ...Read More