US Consumer Inflation Expectations Surge, Fed's Gurley downplays its impact

Chicago Federal Reserve President Guerlbey dismissed a report released last week indicating consumer expectations for future inflation. On Sunday, Guerlbey said in an interview that the number was "not a very desirable number." Guerlbey said, "But this is just a month's data. You need at least two to three months to make it count." A report released last Friday showed a closely watched long-term inflation expectation indicator rising to its highest level in nearly 30 years. This indicator is a key factor in Federal Reserve monetary policy decisions. According to final data from the University of Michigan in February, consumers expect prices to rise at a rate of 3.5% per year over the next 5 to 10 years. According to the data, this is the highest level since 1995, and it is driven almost entirely by the views of Democratic respondents.