US consumers are less upbeat on consumer prices, with the change over the next year and following three years rising to the highest since 2013. SPY is up 0.034%, DXY is down 0.04%.
- Year-ahead expectations of inflation rose for the 10th straight month, hitting a median of 5.2% in August. Inflation expectations over the next three years rose to a median of 4.0%.
- The inflation expectations differ from Fed’s projections in which it has termed price pressures as transitionary. Officials aim to use inflation numbers to determine future policy.
- Some policymakers urge the Fed to end massive asset purchases sooner than later to have more options to respond if inflation persists. They expect the Fed to begin tapering asset purchases this year despite weak job data for August.