cover of episode UBS On-Air: Paul Donovan Daily Audio 'Prices, perceptions, and policy'

UBS On-Air: Paul Donovan Daily Audio 'Prices, perceptions, and policy'

2024/11/12
logo of podcast UBS On-Air: Market Moves

UBS On-Air: Market Moves

Shownotes Transcript

The New York Federal Reserve survey of inflation expectations is of little economic relevance, but may be of future political interest. Inflation expectations are skewed towards prices of high frequency purchases (food and fuel). Trade tariffs, as a sales tax, increase prices paid by US consumers—but generally for lower frequency purchases. As such, the impact on living standards may be greater than the impact on perceived inflation.