Bond Traders See Divergence in U.S. Inflation and Economy: Chart
U.S. inflation expectations and indicators of economic strength typically move in tandem, as growth stokes the prospect for future price increases. That hasn’t been the case lately amid concerns about global growth that contrast with signs of U.S. health. A Federal Reserve measure of expected price gains touched the lowest since at least 1999 this month, even as Citigroup Inc.’s U.S. Economic Surprise Index, which measures whether data beat or miss forecasts, surged to the highest since January
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U.S. inflation expectations and indicators of economic strength typically move in tandem, as growth stokes the prospect for future price increases. That hasn’t been the case lately amid concerns about global growth that contrast with signs of U.S. health. A Federal Reserve measure of expected price gains touched the lowest since at least 1999 this month, even as Citigroup Inc.’s U.S. Economic Surprise Index, which measures whether data beat or miss forecasts, surged to the highest since January 2015.