US inflation expectations slow ahead of interest rate announcement… Was it priced in?

The US holds its final monetary policy meeting this week and sets the benchmark interest rate. Prior to this, a survey found that US consumers expect next year’s inflation rate to be significantly lower than this year’s rate, adding to the theory of adjusting the pace of interest rate increases.

Correspondent Kim Jong-won reports from New York.

A survey found that US consumers expect inflation to rise 5.2% a year later.

This is a decrease of 0.7% from the previous survey in October, the lowest level since August last year.

The reason why inflation expectations have been so low is because American consumers expect particularly slow growth in food and energy prices, which have been tremendous.

Although it is still well above the 2% inflation rate that the Federal Reserve, the US central bank, is aiming for, inflation is expected to pick up in the sense that consumer concerns about inflation have subsided to the lowest level in over a year and four months The analysis that it is at its highest and slowing down has been strengthened.

The survey came a day before the publication of the Consumer Price Index, an indicator the Fed uses when setting interest rates, so expectations for adjusting the pace of rate hikes are also growing.

[폴 킴/심플리파이ETF 최고경영자 : 가장 중요한 건 지금 나와 있는 데이터들을 연방준비제도가 어떻게 해석하느냐입니다. 물가 상승을 주도한 일부 요소들의 상승폭이 둔화하고 있습니다. 이런 점에서 인플레이션에 대한 공포 요소는 사라진 것으로 보입니다.]

The Chicago Mercantile Exchange’s FedWatch, which predicts the size of rate hikes, predicted a 75% chance that the Fed would raise rates by 0.5 percentage points at the monetary policy meeting two days in advance.

In this atmosphere, today (13th), the New York Stock Exchange closed the market with all three major indexes rising more than 1%.