Carola Binder on the Importance of Inflation Expectations and How Policymakers Should Respond
Macro Musings with David Beckworth
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Are Consumer Inflation Expectations Going Down?
Carlo Binder: Consumer inflation expectations will start falling now that gas prices are going down. But if they stay stuck at high, elevated levels, even as gas prices go down, then maybe inflation expectations are becoming unmoored, unanchored. That is hard to know for sure, because there's also a lot of politics in these inflation xtation evens. And again, like, should the fed respond to that? Probably not, but it's just so hard to know.
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