when it comes to the Federal Reserve (FED) exit strategies, psychological factors may be more important than economic factors.
This is due to trying to decide when to withdraw from the monetary stimulus of policymakers, inflation expectations very much, it is treated as actual prices threatened in the future.
how even though the unemployment rate still high 8.9%, and the struggling economic recovery, but energy and food prices are also had a cost of living will rise in consumer expectations.
This was distressed by the Federal Reserve, also allow investors to think, what are expected to rise to the level of inflation, the Federal Reserve will feel the need to index from record low interest rates to rise.
if consumers and businesses expected future inflation will rise, it could have an impact on wages and prices, thus varying expectations into reality.
as oil prices by the Middle East and North Africa political unrest drove rises to above the US $ 100/barrel, the issue became more urgent.
survey showed on Friday, as the channeling rise in gasoline prices in March, consumer inflation expectations for the next five years from the beginning of last month jumped to 2.9%.
since 2008 since oil prices climb to record highs, has been no rise in inflation expectations. Excluding this period this month data at the highest level since the mid 1990.
