Inflation Fears Erupt: A Perfect Storm for the Fed The latest University of Michigan survey has delivered a stark warning to the Federal Reserve: consumers are losing faith in their ability to manage long term prices, and even some of President Trump's most loyal supporters have begun to doubt his capacity to bring relief.
This reading on inflation expectations is particularly disturbing. The data paints a picture of a perfect storm brewing for the Fed.
Consumers' near term views are ticking up, driven by high oil prices resulting from the Iran conflict and the continued closure of the Strait of Hormuz.