Monday 23 November 2015

Markets, Fed have very different ideas about inflation | Stock Cash Market Tips



The Federal Reserve now looks set to raise rates in December, partially based on expectation that inflation is set to finally rise to its 2 percent target. There's only one potential problem.

There's actually a way that markets can see where investors think inflation will go. And they do not exactly see eye to eye with America's central bank.

Over the next five years, annual inflation is expected to run at less than 1.3 percent. Even over the next ten, investors are looking for no more than 1.6 percent per year.

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