A worrisome sign for the Federal Reserve is starting to emerge.
The Fed keeps a close eye on several risks that could make its job of taming inflation even more difficult, such as red-hot consumer demand keeping some upward pressure on prices and the possible effects of geopolitical tensions in the Middle East on oil prices.
But the US central bank also pays close attention to whether Americans still have faith inflation will eventually return to normal. That faith seems to be eroding.
The University of Michigan’s latest consumer survey released Friday showed that Americans’ long-run inflation expectations rose to 3.2% this month, the highest level since 2011.
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