Jerry, Come Get Your Boy

UMich long-term inflation expectations up to 3.1%, cycle highs. Fed needs to do more to prevent this from becoming "entrenched."

UMich Sentiment surveys on inflation are an important driver of the Fed’s “Common Inflation Expectations” Index, which is another indicator they look at to determine forward inflation expectations. Well, we just had a 3.1% reading for the 5-10 year inflation expectations survey from this reading, a new cycle high post-Pandemic. With oil prices continuing to rise and early reporters talking more and more about higher wages, it is clear that this inflation party isn’t really showing any signs of slowing down. The Fed is not catching up fast enough considering they are still buying assets for another 8 weeks are won’t really kick off their tightening cycle until March. They are going to have to do more. Full stop..

Source: Bloomberg Data

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