How inflation expectations affect the economy

Published: Dec. 14, 2022, 2:28 a.m.

Consumers' and businesses' inflation expectations usually stay safely anchored at the Fed's two percent target. But recently, that anchor has been slipping. It's one of the reasons inflation has risen.

For sponsor-free episodes of The Indicator from Planet Money, subscribe to Planet Money+ via Apple Podcasts or at plus.npr.org.

Learn more about sponsor message choices: podcastchoices.com/adchoices

NPR Privacy Policy