Fed Losing Control as Consumers’ Inflation Expectations Hit New All-Time High

from Zero Hedge

Another month, another record high in consumer inflation expectations.

While central banks, tenured economists and the financial media are doing everything in their propaganda power to convince ordinary Americans (who don’t have the privilege of charging their Federal Reserve debit card when shopping at the grocery store) that the current phase of galloping inflation – to avoid the far more dreaded “h” word – is merely transitory, the shocking reality on the ground is that the Fed has effectively lost control over near-term inflation expectations, as the NY Fed’s latest survey of consumer expectations reveals.

According to the September installment of this closely watched survey, consumer inflation expectations for one year ahead hit a fresh all-time high for this series of 5.31, up from 5.18 in August. “Median short-term (one-year-ahead) inflation expectations increased by 0.1 percentage point in September to 5.3%, the eleventh consecutive monthly increase and a new series high since the inception of the survey in 2013″ the NY Fed said without a trace of irony even as its economists plead with the public that this spike will last at most a few more months, hence “transitory.”

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