Fed Official: Rising Inflation Expectations Could Be a 'Rate Cut Speed Bump'

BlockBeats News, March 26th, Chicago Fed President and FOMC voter Gulsbee warned that there are signs that investors in the U.S. bond market are beginning to anticipate higher inflation, which would be a "significant warning signal" that could disrupt rate setters' easing plans. In the week before Gulsbee made the above remarks, a closely watched University of Michigan survey showed that U.S. households' long-term inflation expectations hit their highest level since 1993.

Gulsbee said: "If you see market-based long-term inflation expectations start to change as they have in the past two months, I would take that as a significant warning signal that needs to be highly watched." (Jinshi)