๐ฃ ALERT: Long-term Inflation Expectations Rise, Challenging Fed's Targets ๐๐ฆ
๐ Key Highlights:
๐ Consumer long-term inflation expectations rise, with 3-year outlook at 2.7% and 5-year at 2.9%.
๐ All figures exceed the Fed's 2% inflation goal, suggesting tighter monetary policy may continue.
๐ Fed Chair Jerome Powell emphasizes commitment to 2% target, despite rising expectations.
๐ Headline inflation at 2.4%, with core level at 2.8% for January, showing progress but challenges ahead.
๐ Survey indicates possible relief in rent costs, with a decrease to 6.1%, the lowest since Dec 2020.
๐ Job security concerns grow, with a 2.7 percentage point increase in perceived job loss probability.
๐ Consumer long-term inflation expectations rise, with 3-year outlook at 2.7% and 5-year at 2.9%.
๐ All figures exceed the Fed's 2% inflation goal, suggesting tighter monetary policy may continue.
๐ Fed Chair Jerome Powell emphasizes commitment to 2% target, despite rising expectations.
๐ Headline inflation at 2.4%, with core level at 2.8% for January, showing progress but challenges ahead.
๐ Survey indicates possible relief in rent costs, with a decrease to 6.1%, the lowest since Dec 2020.
๐ Job security concerns grow, with a 2.7 percentage point increase in perceived job loss probability.
๐ Context/Background:
๐ Rising long-term inflation expectations reflect growing consumer doubt in the Fed's ability to control inflation in the near future.
๐ Why This Matters:
๐ Elevated expectations can influence actual inflation, potentially complicating the Fed's efforts to normalize prices.
๐ Market Insights:
๐ Markets anticipate a Fed rate hold next week, with future cuts expected, though long-term expectations may affect this outlook.
๐ Expert Statement:
๐จ๏ธ "We remain committed to bringing inflation back down to our 2 percent goal," - Fed Chair Jerome Powell.
๐ Impact & Recommendations:
๐ Investors and policymakers must monitor inflation expectations closely, as they play a crucial role in shaping monetary policy decisions. $Nasdaq Composite Index (.IXIC.US)$ $Dow Jones Industrial Average (.DJI.US)$ $S&P 500 Index (.SPX.US)$ $Invesco QQQ Trust (QQQ.US)$ $SPDR S&P 500 ETF (SPY.US)$
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