U.S. consumer inflation expectations surge, Federal Reserve's Goolsbee downplays its impact
Chicago Federal Reserve President Goolsbee expressed indifference to the report of rising consumer inflation expectations, stating that the data needs to be observed for two to three months before drawing conclusions. Last Friday's report showed that the long-term inflation expectation indicator rose to its highest level in nearly 30 years, with consumers expecting prices to rise at an annual rate of 3.5% over the next 5 to 10 years, primarily driven by Democratic respondents
According to Zhitong Finance, Chicago Federal Reserve President Goolsbee is dismissive of a report released last week showing an increase in consumer expectations for future inflation. On Sunday, Goolsbee stated in an interview that the figure "is not an ideal number." He remarked, "But this is just one month of data. You need at least two or three months for it to count."
A report released last Friday indicated that a closely watched long-term inflation expectation indicator has risen to its highest level in nearly 30 years. This indicator is a key factor in the Federal Reserve's monetary policy decisions. According to the final data from the University of Michigan in February, consumers expect prices to rise at an annual rate of 3.5% over the next 5 to 10 years. This is the highest level since 1995 and is almost entirely driven by the views of Democratic respondents
