Inflation expectations: anchoring at 2% still holds

Since the end of 2018, several inflation expectations measures have weakened in the US, but in a modest way. The low points of early 2016 are still some way off. The Fed vice-chair considers these expectations to be at the bottom of the band consistent with the central bank's target. From a macro fundamental standpoint, a modest easing of monetary policy may be justified as an insurance to avoid falling below this range (one or two rate cuts). The market expects much more rate cu...