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Inflation Expectations Three Years Out Ease to 3.6%, NY Fed Survey Shows

The Federal Reserve Bank of New York Building in New York City.

The Federal Reserve Bank of New York Building in New York City.

Photographer: Scott Eells/Bloomberg 

Expectations for US inflation three years ahead fell to 3.6% in June from 3.9% a month earlier, the biggest drop since January, according to the latest survey by the Federal Reserve Bank of New York.

The decline may ease the Fed’s concerns that inflation expectations are at risk of becoming unanchored, one reason why the US central bank changed course last month and raised interest rates by 75 basis points. The three-year outlook hit a high of 4.2% in October.