Inflation Expectations: “Loosing traction”

After taking a look at the today´s Cleveland Fed “inflation expectations curve”, I just couldn´t resist the analogy with the Nike logo. As the saying goes, “Just do it”. Unfortunately, despite encouraging signs mentioned by David Glasner (note that he recognizes the “sophistication” of the Cleveland Fed´s estimates of inflation expectations), the logo is “melting”. The latest inflation expectations curve, released together with the monthly CPI, shows the whole curve is down from three months ago.

Mr. Bernanke, notwithstanding the recent market bout of optimism, BEWARE!

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