In Recent Years, Inflation Expectations Increased After Oil Shocks and Stabilized Only Once Monetary Policy Tightened

Andrew Glover

Economic Bulletin, 2026, 4

Abstract: Historically, U.S. households’ expectations for future inflation remained anchored after an oil price shock without significantly tighter monetary policy. Since 2010, however, oil price shocks have led household inflation expectations to increase more persistently, and expectations have only normalized after monetary policy tightened. This recent experience suggests monetary policy may play a role in stabilizing expectations after a shock.

Date: 2026
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.kansascityfed.org/research/economic-bu ... ry-policy-tightened/ full text (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedkeb:103507

Ordering information: This journal article can be ordered from

Access Statistics for this article

More articles in Economic Bulletin from Federal Reserve Bank of Kansas City Contact information at EDIRC.
Bibliographic data for series maintained by Kira Lillard ().