Inflation expectations survey flashes warning signs in US
University of Michigan report, cited by Fed officials, says outlook had dropped in tandem with tariffs
One of the authors of the University of Michigan’s most recent study of US inflation expectations says consumers are expecting both prices and unemployment to rise significantly.
Joanne Hsu, the university’s consumer surveys director, tells Central Banking that the findings of the study, published on April 25, have put policy-makers “in a bind, given the emerging risks to both elements of the Fed’s dual mandate”.
In a note accompanying the research, Hsu said US tariff policies and looming
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