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Fed’s Broad-Based Inflation Expectations Index Rises

  • Powell has flagged index as something to “take seriously”
  • Index comprises more than 20 inflation expectation indicators
Jerome Powell

Jerome Powell

Photographer: Eric Lee/Bloomberg

A broad-based measure of inflation expectations that has been flagged by Federal Reserve Chairman Jerome Powell rose to 2.19% at the end of the second quarter from 2.17% at the end of the first, according to data published on the central bank’s website on Friday.

Developed by Fed board economists in late 2020, the index of common inflation expectations comprises more than 20 indicators measuring the attitudes of consumers, investors and professional forecasters toward future price increases.