Economics
Powell’s Key Indicators Shaping the Fed’s Rate Path
- Economists say CPI and Michigan inflation survey are key data
- Most say Powell is nimble and flexible in responding to data
Jerome Powell
Photographer: Eric Lee/BloombergThis article is for subscribers only.
Federal Reserve Chair Jerome Powell, seeking to respond quickly to incoming data, has brought up a handful of key economic indicators in explaining his view of monetary policy.
The most important of those is the consumer price index, followed by the University of Michigan survey of inflation expectations, according to economists surveyed by Bloomberg. Two-thirds cited the CPI as the most important indicator, and a majority cited the Michigan survey of 5- to 10-year expected inflation as either the most or second-most important indicator.