Price inflation expectations are low overall, but the young, who never experienced the US inflation of the 1970s and early 1980s, have the least expectation of accelerating inflation.According to a Fed survey, people over 60 expect inflation to come in at 3.4% over the next three years, while people under 40 expect it to be 2.8%.
For the record, in the EPJ Daily Alert, I am warning that price inflation, likely starting in the second half of 2015, will be much higher. The Fed won't become concerned about price inflation until it hits 3%, but by then the inflation could get out of hand with a first stop at 5%, and an eventual climb to the low double digits.
-RW
What if there's a Grexit and the euro tanks? What if the yen finally crashes?
ReplyDeleteWhat if the South American currencies tank?
What if credit doesn't expand in 2015?
My point is there are a lot of dollar bullish factors out there that can't be ignored.