In the Asian session on Tuesday (April 18), the U.S. dollar index fell back from a high, and the latest price of the U.S. dollar was 102.08, a decrease of 0.01%. Short-term inflation expectations readings were higher than fourth-quarter inflation readings, and the data suggested that a rise in short-term inflation expectations above trend inflation could lead to higher actual inflation, and the two have recently become more closely linked.
Economist Ina Hajdini said that in the current environment, “the relationship between current inflation and short-term inflation expectations is much stronger than the relationship between current inflation and longer-term inflation expectations.” , the annualized trend inflation rate was 3.3%, but reached 3.4% in the fourth quarter of last year, well above the Fed‘s 2% target. The Cleveland Fed said on Monday that short-term expectations may be more of a concern right now.
