Good News for the Fed: Shoppers See Lower Inflation on the Horizon

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Americans believe that inflation rates for gasoline, education, medical care and food are near prepandemic levels. If shoppers keep thinking inflation will fall, that will help cause it to do so, Fed officials believe.

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https://www.wsj.com/articles/good-news-for-the-fed-shoppers-see-lower-inflation-on-the-horizon-91fa8d28 Americans believe that inflation rates for gasoline, education, medical care and food are near prepandemic levelsInflation is slowly easing, but it’s still far from the Federal Reserve’s 2% target. WSJ’s Nick Timiraos explains how 2% became the central bank’s sweet spot, and what happens when the U.S. economy strays too far from it. Photo Illustration: Preston Jessee

Consumers expect inflation to stay high over coming months but decline in the years ahead to levels closer to those seen before the pandemic, according to recent surveys likely to be welcomed by the Federal Reserve.Continue reading your article with

 

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