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The Fed is betting inflation expectations will stay controlled It s a gamble – Finance & Commerce

.  Turn on the news, scroll through Facebook, or listen to a White House briefing these days and there’s a good chance you’ll catch the Federal Reserve’s least-favorite word: Inflation. If that bubbling popular concern about prices gets too ingrained in America’s psyche, it could spell trouble for the nation’s central bank. Interest in inflation has jumped this year for both political and practical reasons. Republicans, and even some Democrats, have been warning that the government’s hefty pandemic spending could push inflation higher. And as the economy gains steam, demand is coming back faster than supply. It’s a recipe for bigger price tags for everything from airline tickets to used cars, at least temporarily.

The Fed is betting inflation expectations will stay controlled It s a big gamble

The Fed is betting inflation expectations will stay controlled. It’s a big gamble SECTIONS The Fed is betting inflation expectations will stay controlled. It’s a big gambleBy Jeanna Smialek, New York Times Last Updated: May 18, 2021, 11:27 AM IST Share Synopsis The Fed thinks the jump in prices this year will fade as data quirks, supply bottlenecks and a reopening-induced pop in demand work their way through the system. New York Times Turn on the news, scroll through Facebook, or listen to a White House briefing these days and there’s a good chance you’ll catch the Federal Reserve’s least-favorite word: Inflation. If that bubbling popular concern about prices gets too ingrained in America’s psyche, it could spell trouble for the nation’s central bank.

Fed Bets Inflation Expectations Will Stay Controlled

Inflation Fears Abound as Gas and Lumber Shortages Bite. Should the Fed Worry? Federal Reserve officials believe low and stable price expectations give them room to heal the job market. But what if outlooks change? Travelers at McCarran International Airport in Las Vegas. Prices are rising on everything from airline tickets to used cars as the economy reopens.Credit.Joe Buglewicz for The New York Times May 17, 2021Updated 4:34 p.m. ET Turn on the news, scroll through Facebook, or listen to a White House briefing these days and there’s a good chance you’ll catch the Federal Reserve’s least-favorite word: Inflation. If that bubbling popular concern about prices gets too ingrained in America’s psyche, it could spell trouble for the nation’s central bank.

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